Fuel Taxes

February and March were busy months for state legislatures on the transportation front with four states approving major funding packages, several considering measures to revise gas tax indexing mechanisms to avoid losing transportation revenues in the wake of declining gas prices, and a whole host of other states continuing to contemplate or negotiate additional legislation that could bear fruit down the road. Here’s a roundup of the developments since my previous post on this topic.

In the March/April issue of Capitol Ideas, I wrote about how the state of Utah has used transportation investment to drive the state’s economic growth. Among those I talked with were two legislators—one a civil engineer, the other an economist—as well as a planning official for the Utah Department of Transportation. But there is plenty more to the story of Utah’s success as I learned in this February interview with Abby Albrecht of the Utah Transportation Coalition, which arrived too late to be included in the published article. The coalition is an organization formed by the Utah League of Cities and Towns, the Salt Lake Chamber of Commerce and the Utah Association of Counties.

A gas tax increase appears on the fast track to final passage in Iowa. Transportation funding measures in Georgia and Washington also moved forward this week. And governors, state DOT officials and legislators in a variety of other states introduced or defended major transportation packages as the funding conversation heated up in those states. Here’s a roundup of the latest developments.

This week, an update on more than 20 states looking at transportation funding this year. Per-gallon gas tax increases, indexing, sales taxes, tax swaps, motor vehicle excise taxes, vehicle registration fees, transportation fund lockboxes and bonding are among the issues factoring into the discussions around the country. I also have information about how you can join us for our latest eCademy webinar this week on the states to watch on transportation funding.

We got a look this week at the Obama administration’s vision for transportation with the release of the President’s budget and authorization proposal and a new report looking at trends impacting the nation’s transportation system and the implications of those trends over the next 30 years. Meanwhile, Congress has begun looking at options for how to fund a longer term transportation bill with the debate appearing to coalesce around three possibilities. Nevertheless, state officials around the country remain concerned about the impact ongoing federal uncertainty is having on their ability to plan for the all-important transportation project construction season.

Earlier this month, I named “project selection” as one of my Top 5 Transportation Issues for 2015. Just in the first month of this year, we’ve already seen a variety of developments in a number of areas that stand to influence project selection in the years ahead. New governors are already putting their stamp on project selection by reviewing projects approved by their predecessors and by nominating new (or in some cases old) leaders to head state departments of transportation. I also have updates on ride-hailing services like Uber and Lyft, public transportation projects, autonomous vehicles and state transportation planning processes.

With nearly a month gone in 2015, it’s time once again to check in on states that are considering their transportation funding options this year. Governors are using their State of the State addresses to establish finding funding solutions as a priority and lawmakers are moving forward with plans of their own as legislative sessions get underway in many states. I have a look at what’s happening in 16 states, some additional resources where you can read more and a few words about how you can join us for an upcoming discussion on what’s going on around the country.