State Transportation Funding at Year-End 2017

tiac-new-logoThe Transportation Investment Advocacy Center (TIAC) tracked over 140 transportation funding measures in 38 states in 2017, with 29 bills approved in 23 states for over $69 billion in new revenue.

California approved the most revenue, with a fiscal note estimating that the state’s comprehensive transportation funding increase (Senate Bill 1) will generate $52.4 billion over the next decade. Five other states – Indiana, Montana, Tennessee, South Carolina, and Oregon – also approved motor fuel tax increases in 2017. Two additional states – Utah and West Virginia – adjusted their existing variable-rate state gas tax formula to increase transportation revenue.

Electric vehicle fees greatly expanded in 2017 as well. In the beginning of the year, only 10 states had implemented fees to ensure electric vehicles contributed to the maintenance and improvement of roads and bridges. An additional eight states now charge an electric vehicle fee. Oklahoma also passed an electric vehicle fee in 2017, but the fee was rescinded over questions about the process through which the bill was passed.

Eight states approved one-time funding in 2017, including bonds in six states and general fund or surplus spending in two states.

The TIAC reports notes that timing of the market impact of these actions is difficult to project, as most fiscal estimates forecast into the next decade and recurring taxes/fees may be implemented gradually. Additionally, new revenue may be used to address previous debt from bonds or allocated as grants to local governments.

Check out the 2017 State Transportation Funding Year-End Report for all the details.

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