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Soaring gas prices are leaving sinking feelings in many people's pockets as they fill up their tank at the pump.

With gas prices in the New Baltimore area hovering around $3.45 to $3.60 per gallon, many motorists had something to complain about as they put gas into their cars.

"I remember when I used to be able to fill up my tank on a $20 bill," said Devon Hill of Richmond, who drove a Chevrolet Cavalier, as the display on his gas pump stopped at $41.18.

Feeling the pinch even more was Howard Anderson of Mount Clemens, who spent just shy of $80 to fill up his Grand Caravan.

"I probably couldn't sell this thing for more than I'm going to spend on gas in the next six months," Anderson said.

"It's incredible," said Dave Ruckman of Columbus as he spent $53.01 to fill up his Ford Escape XLT. "The cost keeps going higher and higher. Someone has to be making some unbelievable profits."

If someone is, in fact, making "unbelievable profits," it isn't the state of Michigan.

Even with the rising cost of gasoline, Michigan is not making any more money from gas tax revenue today than it was ten years ago. Michigan has made 19 cents in gas tax revenue per gallon of gasoline since 1997, when the tax increased from 15 cents per gallon, according to the Mackinac Center for Public Policy.

This means that Michigan makes the same amount of money from each gallon of gasoline sold, regardless of what the consumer paid for it. Paying $2 a gallon at the pump? Michigan makes 19 cents. Paying $3.50 a gallon? Michigan makes 19 cents.

An analysis by the Michigan House Fiscal Agency showed that the revenue from gas taxes fell for the years between 2003 and 2006. According to this analysis, Michigan made $896.8 million in gas taxes for 2006, which is $43.8 million less than the $940.6 million the state made from gas tax revenue in 2003.

Michigan's transportation system receives a lot of its funding from the state's gas taxes, according to the Michigan Infrastructure and Transportation Association Web site. With more people conserving fuel and refusing to pay the current gasoline prices, that fund can continue to get smaller.

Mike Nystrom, vice president of government and public relations for MITA, said the association supports House Bills 4575-4577, Michigan legislation that has been recently proposed in order to combat the shrinking transportation fund. One of the remedies being considered is another increase in gas taxes.

While an increase in gas taxes could help provide more money for Michigan's transportation fund, it could also mean consumers would have to pay yet a few cents more at the pump.

With $4 per gallon already a reality in some places in the United States, it leaves motorists in Michigan, such as Dave Ruckman, wondering when they, too, will experience such high gasoline prices.
Posted in: News
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