Dubois County weighs emergency aid as gas tax suspension cuts road funding

Cheaper gas at Indiana pumps could leave Dubois County with less money for roads, bridges and routine maintenance, and county leaders are already preparing for a hit that could reach $800,000 over four months. The Dubois County Council signaled Monday that it would back emergency help for the highway department if the state tax suspension leaves the county short.

County Highway Engineer Levi Leffert laid out the risk in a letter to the council, warning that the county’s Motor Vehicle Highway and Local Road and Street revenues could fall by roughly half during the suspension period. The highway department averages about $345,000 a month in MVH revenue and about $65,500 a month in Local Road and Street revenue, which means even a temporary drop can quickly reshape the county’s repair schedule.

That pressure lands while road work is already underway and other projects have already been awarded. Leffert’s warning pointed to the practical fallout: maintenance could be delayed, pavement could deteriorate further before crews reach it, and contractors could face changes in timing and scheduling. For residents driving county roads, that could mean rougher commutes now and higher repair bills later.

The council discussed using Local Income Tax funds as a temporary bridge if needed, with the expectation that the county could be reimbursed if the state later backfills the lost money. Councilwoman Deena Lewis cautioned that the full effect may not show up for several months because gas-tax revenue arrives with a lag. Councilman Michael Stallman said any legislative fix may not come until 2027, leaving local officials to manage the gap in the meantime.

Indiana’s energy emergency began with Governor Mike Braun’s April 8 declaration. The state did not collect Gas Use Tax from April 8 through July 7, 2026, and did not collect Gasoline Excise Tax from May 6 through July 7 after Braun extended the order again on June 3. The governor described the May 6 move as the maximum 30-day extension allowed by law, and the state said the suspension would give Hoosiers about a 12.4% discount on average gasoline prices.

The tradeoff is direct in Dubois County. Gasoline-use-tax revenue normally flows to counties and municipalities through the Motor Vehicle Highway Account formula and the Local Road and Bridge Matching Grant Fund, known as Community Crossings. That makes the pump-price relief a local budgeting problem too, especially in a county where the council is already wrestling with transportation issues tied to the Mid-States Corridor and the county’s role in the Mid-States Corridor Regional Development Authority.