It’s been one year since President Obama signed the American Recovery and Reinvestment Act.

Charging motorists on a per mile basis has gained some traction in recent years as a potential revenue mechanism to replace state and federal fuel taxes. Pilot projects to test VMT systems in many states are helping to define how they would work.

Nationwide marketing campaigns and state efforts to seek public input and build trust in transportation decision making are helping to galvanize support for the infrastructure investment many say America needs.

Despite the American Recovery and Reinvestment Act of 2009, many states are falling short in providing needed investment in the nation's highways and bridges. But some states in 2009 had success in finding revenue sources to fund them.

Fiscal conditions in the states began to decline in fiscal 2008. State spending and revenues grew at a lower rate than the prior year and balances were well-below their near record levels of fiscal 2007. While fiscal 2008 saw somewhat moderate declines, the fiscal situation in the states has deteriorated much more sharply in fiscal 2009. State spending is projected to be negative for the first time since 1983, balance levels are being reduced as states use reserves to address shortfalls, and recent data shows state revenues declining by 4 percent. As a result, states are likely to face a difficult budgetary environment in fiscal 2010 and beyond.

The transportation needs of this country are growing. There is increased congestion, an increased demand for public transportation and increasing fuel costs. This increased demand on the transportation system has led to an increased strain on states’ budgets as they also try to fund escalating costs for healthcare and education.

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