Lauzen Calls for Significant Gas Price Relief

Friday, August 26, 2005

By Senator Chris Lauzen

AURORA (August 26, 2005) -- Senator Chris Lauzen (R-Aurora) today joined Senators Steve Rauschenberger (R-Elgin) and Dave Syverson (R-Rockford) in asking Governor Blagojevich to call a special session of the General Assembly in order to pass legislation that provides significant, realistic gas price relief.

"I have listened to constituents over the phone, at neighborhood block parties, summer festival parades, and in office and newspaper correspondence. After discussing alternatives with senate colleagues, we agree that we should take every reasonable action within our direct control to reduce the burden of high gas prices on the people of Illinois," Lauzen said.

Lauzen's proposals would eliminate the state sales tax that goes to General Revenue Spending of 5% on gasoline sales and require a mandatory 2.5% discount on gas purchases for using a check or cash. At current gas prices, this 7.5% relief would result in a price reduction of 20 cents per gallon. Motor fuel taxes that go to the construction of roads would remain the same. And, the Illinois Petroleum Marketers support the concept of passing on to consumers 92% of the savings gained by not using credit cards which cost service stations 3% of the purchase.

According to the Commission on Government Forecasting and Accountability (formerly Illinois Economic and Fiscal Commission), state revenues are exceeding budget projections by $518M and 5% sales tax on inflated gas prices produce "bonus" revenue of approximately $315,000,000 per year, i.e. $6.3B gallons of gasoline and diesel fuel pumped per year x $1.00 higher price than last fiscal year x 5%.

Lauzen said, "If we do not act now, not only will typical Illinois families find it increasingly difficult to pay unavoidable monthly expenses, but the state government will continue to reap a financial windfall of revenues at its residents' expense." He also pointed out a list of pork projects totaling $200M that were inappropriately used to secure votes on this year's budget that should be eliminated.

Other proposals, like capping the wholesale price of gas, irrationally defy the "supply and demand" laws of economics, and will lead to initial shortages and longer term shutting down of supply... service stations and wholesalers will not sell their product at a loss. Tapping the Strategic Petroleum Reserve is not within state lawmakers' authority and has been dismissed by federal representatives like U.S. Senator Barack Obama who says "... they exist for national security purposes" and experts like Ben Lieberman at the Heritage Foundation who writes, "Increasing supplies should be seen as a long-term project, not a short-term solution."

In the long-term, Senator Lauzen believes that inexhaustible sources of clean energy domestically-produced like hydrogen where the waste product from "combustion" is water vapor, not only solve the nation's energy problem but also avoid sending our soldiers to fight wars where too much of our current petroleum resources originate. He successfully passed Hydrogen Resolution #SJRCA27 in May 2005 encouraging the State of Illinois to pursue this better, long-term solution.