States Face Transportation Funding Roadblocks in 2013

January 4, 2013

A number of states across the country are evaluating their transportation funding needs as 2013 begins. Taxes and fees account for much of the sources of revenue for state transportation budgets, but in many cases they are not enough.

As reported by Fox17, the Michigan Department of Transportation (MDOT) is facing budget limits. The gas tax in Michigan was last raised in 1997, and because residents are using less gas and keeping their cars longer, the budget is lacking. The last major road projects in Michigan have been funded by federal stimulus money and the state has no plans for new projects. Instead, they will focus on maintaining current systems through an asset management plan.

In Fairfax County, Va., an estimated $8.1 billion will be needed over the next 10 years for transportation spending, according to the The Washington Post. Officials are not optimistic about the passing of a transportation bill during the 2013 General Assembly session if Democrats and Republicans cannot reach an agreement on a source for the revenue.

A similar issue is facing the state of Maryland, as officials debate an increase in either gas or state sales tax. As reported by The Baltimore Sun, Maryland Gov. Martin O’Malley is considering raising the sales tax to generate income for the Maryland Transportation Trust Fund.

Source: Fox17, The Washington Post, The Baltimore Sun