Strickland Proposes Reduction in “Shrinkage Allowance”

Oil companies would see a smaller-than-expected state subsidy for gasoline that evaporates at the pump under the transportation budget Governor Strickland is proposing.

Reducing the so-called “shrinkage allowance” from the state gas tax would provide $38 million to offset a deficit facing the State Highway Patrol.

Strickland says safety is a top priority of his administration and he doesn’t want to weaken the troopers’ presence on state highways.

The governor says gas stations would still receive the same amount from the tax, so the affect on consumers should be minimal.

Strickland’s blueprint for state transportation spending covers the two years beginning July First.

(Copyright 2007 by The Associated Press. All Rights Reserved.)

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