CSG Midwest
Iowa became the first state in the Midwest this year to approve a plan to raise taxes for roads, but it may not be the last. According to The Des Moines Register, Iowa’s SF 257 increased the gas and diesel tax by 10 cents (to 31 cents for gas and 22.5 cents for diesel). It will bring in an additional $215 million annually for city, county and state roads. The gas tax in Iowa hadn’t been raised since 1989; the new rates took effect March 1.
 

In Alabama Department of Revenue v. CSX Transportation the Supreme Court held 7-2 that railroads can be compared to their competitors when determining whether a tax is discriminatory in violation of the Railroad Revitalization and Regulatory Reform Act (4-R Act).  Different taxes paid by railroads and their competitors must be compared with determining whether a tax railroads pay is discriminatory.  The State and Local Legal Center (SLLC) filed an amicus brief in this case disagreeing with the Court’s first holding and agreeing with its second holding. 

Most states have created dedicated trust funds to support transportation. Some have constitutional restrictions on how the revenues in those funds can be spent. Others simply have restrictions codified in statute that haven’t always been effective in preventing the diversion of revenues to other budget areas. Maryland and Wisconsin are the two newest states with constitutional protections for their transportation trust funds. Additional states could follow suit, but despite their real or perceived benefits, such protections are unlikely to have much impact on struggling state transportation budgets.

Earlier this year, I named “project selection” one of my top 5 issues in transportation for 2015. From light rail and streetcar projects to efforts to reform planning processes to the costs of highway construction to the potential impacts of such factors as millennial preferences and autonomous vehicles, project selection is being pondered and debated in every state and community around the country. I have updates on what’s been happening this year in 21 states and the District of Columbia as well as links to recent reports on transportation spending limitations, performance measurement, Complete Streets policies, commuter and job growth trends and the future of cars.

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.

CSG Midwest
Most U.S. states, and all in the Midwest, require motorists to have auto insurance. According to the Insurance Information Institute, New Hampshire is currently the only state where auto liability insurance is not compulsory. In that state, drivers can go without coverage by demonstrating they have sufficient funds in the event of an at-fault accident.
 

Several states appear poised to tackle transportation funding during the 2015 legislative sessions. During this eCademy, CSG takes you around the country to get progress reports on funding initiatives from state house reporters, legislators and others following the activity. James Corless of the Washington, D.C.-based advocacy organization Transportation for America also provides a perspective on the latest revenue mechanism trends and a rundown of resources available to policymakers.

 

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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.

The continuing evolution of public-private partnerships (P3s) and tolling was another of the issues on my recent Top 5 Transportation Issues for 2015. There have already been a variety of developments this year on some key stories concerning both, including a debate in Kentucky over how to finance a new bridge over the Ohio River, efforts to convince the new Governor of Maryland of the benefits of two light rail P3 projects and a new infrastructure financing tool to encourage private investment proposed by President Obama. Here are a few updates from around the country and links where you can read more.

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