In The News

One-Third of States Have Taken Their Own Highway Funding Action, Analysis Shows

By Transport Topics
Posted Aug 19th 2015 12:26PM

A state-by-state analysis conducted by The Associated Press shows that nearly one-third have approved measures this year to raise funds for highway and bridge work.

AP says the surge of activity — spurred by a lack of action at the federal level — means at least half of the states now have passed transportation funding measures since 2013.

States are taking the initiative to raise billions of dollars through higher fuel taxes, vehicle fees and bonds to repair old bridges and roads and relieve traffic congestion. At the end of July, Congress passed a three-month extension of the current highway funding authorization, the 34th consecutive patch since 2009. The Senate has approved a six-year plan, but the House has not taken action on a long-term bill.

"I don't know of a state that's not having the conversation" about raising revenue for transportation, Iowa Transportation Director Paul Trombino III, who is vice president of the American Association of State Highway and Transportation Officials, told AP.

Iowa recently raised fuel taxes by 10 cents a gallon.

AP says about 20% of the nation's 900,000 miles of interstates and major roads need resurfacing or reconstruction, according to one analysis of federal data, and a quarter of the 600,000 bridges are considered structurally deficient or functionally obsolete.

The American Road & Transportation Builders Association says federal funds cover about half of a state's capital expenditures for roads and bridges. But AP says money available from the federal Highway Trust Fund declined 3.5% during the five-year period ending in 2013 because of improved fuel economy and other factors. The fund receives money from federal taxes on gasoline and diesel.

Some examples of state action that AP cited include:

  • Connecticut legislators approving $2.8 billion of additional transportation bonding over the next five years.
  • Idaho raising its fuel tax by 7 cents a gallon and increasing vehicle registration fees to raise $95 million a year.
  • Nebraska's Legislature overriding the governor's veto to enact a 6-cent-a-gallon fuel tax increase.

Even local governments are forging ahead on their own, AP said, citing a new 4-cent-a-gallon gas tax in July in Normal, Illinois, and a 5-cent hike that will kick in Jan. 1 in Osceola County, Florida.

ttnews.com