Debt Financing

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.

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?

Issue: Infrastructure investment was expected to be a key policy goal of the Trump administration. While the administration did not produce a comprehensive plan to accomplish that in 2017—it’s now expected after the State of the Union in late January—details of the administration’s priorities that have emerged suggested an emphasis on more targeted federal investments, the use of federal dollars to encourage states that help themselves by seeking additional transportation revenues, and an effort to leverage private sector investment. In late September, the president appeared to sour on how big a role public-private partnerships, or P3s, could play in a federal investment package, but many continue to believe P3s could play a significant, if limited, role in facilitating some infrastructure projects.

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.

Infrastructure investment was a big winner on Election Day 2017 as a variety of state and local ballot measures around the country to raise taxes or authorize borrowing won voter approval. Here’s a roundup of what happened Tuesday and a look ahead to 2018.