Rethinging the Way Transportation Infrastructure is Funded
States are taking matters into their own hands
It may come as a surprise to you, but there is a quiet revolution in transportation funding underway these days. Faced with a depleted Highway Trust Fund and uncertain prospects for more money from a deficit-conscious Congress, many states are taking matters into their own hands and aggressively pursuing more fiscal independence.
A survey we have recently conducted documents significant funding initiatives in 18 states. Some states have raised their gasoline taxes (MD, WY, MA, and VT). Others have shifted to a tax on fuel at the wholesale level (e.g.PA). Still others have enacted dedicated sales taxes for transportation (e.g. AK, VA) or floated toll revenue bonds (e.g. OH).