Alternative Funding Sources

With many legislatures wrapping up sessions this month or already adjourned sine die, it seems like a good time to check in on efforts to seek additional transportation revenues. This year appears to be holding true to form as an even-number election year when votes for gas tax increases and other measures are a bit harder to come by. Still, some states have experienced limited success in moving measures while others remain hopeful for action this year on the transportation funding front.

Since last week’s release of details of President Trump’s long-awaited infrastructure plan and his proposed FY 2019 budget, reaction has been rolling in. Here’s a primer on where to read more about the President’s overall approach to infrastructure and various aspects of the plan getting attention, as well as what various stakeholder groups and analysts are saying.

I have an article in this week’s issue of The Current State looking at Kentucky’s quest for additional revenues to fund transportation in the future. That makes it as good a time as any to check in on some of my other states to watch in 2018 on transportation funding.

Issue: Seven states (CA, IN, MT, OR, SC, TN and WV) raised gas taxes in 2017 while Utah modified its gas tax formula to allow for more robust revenue growth. Other states including Colorado, Idaho, New Hampshire, Utah and Wisconsin approved one-time transportation funding. Wyoming, which raised its gas tax in 2013, increased vehicle registration and other fees. Ten states approved new fees for electric and/or hybrid vehicles in 2017. Meanwhile states like California, Oregon and Washington continued their experiments with mileage-based user fees, which some believe could one day replace gas taxes. Will 2018, an election year in most places, continue to see state activity on the state funding front and how will a change in philosophy from Washington influence states?

2017 was a big year for state transportation funding efforts, following in the footsteps of recent odd-number years 2013 and 2015 that also saw significant activity. So, what’s on tap for 2018? Here’s my annual look ahead.