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Successful Legislative Campaigns
Successful Legislation Case Study: Colorado Senate Bill 260 (2021)
A new 2 cents-per-gallon fee on fuel consumption beginning in July will help generate an estimated $5.3 billion in transportation funding over the next decade. The fee will increase by 1 cent per gallon each July until it reaches 8 cents per gallon in fiscal year (FY) 2028-29. It will remain at that level until FY 2031-32 when the fee is indexed to the National Highway Construction Cost Index (NHCCI) inflation.
The increases were provided by state Senate Bill 260 (SB 260), signed into law June 17, 2021, by Colorado Gov. Jared Polis (D). It also creates four state-backed enterprises to provide additional sources of transportation funding through separate fees and revenue bonds.
SB 260 also:
- Creates a $2 per day fee on car-sharing services.
- Indexes an existing $2 per day on car rentals for inflation.
- Temporarily lowers vehicle registration fees by $11.10 per vehicle this year, and by $5.55 in 2023. Fees beyond 2024 remain unchanged.
- Prioritizes mitigating the impacts infrastructure development can have on the environment.
House Speaker Alec Garnett (D-Denver) and Senate Majority Leader Stephen Fenberg (D-Boulder) were among the main sponsors of the bill. Outside advocacy and business organizations also rallied support. The bill passed along party lines, 41-24 in the House and 20-15 in the Senate.
The Transportation Investment Advocacy Center (TIAC) staff researches and prepares detailed case studies of successful — and unsuccessful — state and local legislative and ballot initiatives to increase transportation infrastructure investment. Each study explores the key players, politics, issues, and media involved in the effort, and summarizes campaign “best practices.”
Read the Colorado SB 260 case study for more information.
Register for the State & Local Transportation Funding Workshop hosted by ARTBA-TIAC July 12-13. The workshop will include a session on “New Funding Strategies for Continued Growth in Freight Traffic”.
Missouri Senate Bill 262 (2021)
Missouri Gov. Mike Parsons (R) signed Senate Bill 262 (SB 262) into law on July 13, 2021. It increases the state gas tax by 12.5 cents per gallon over five years – from 17 cents per gallon to 29.5 cents per gallon by 2026.
Facing an $825 million annual priority project backlog, it was the first time since 1992 that Missouri increased its gas tax.
The law, modeled after similar 2016 legislation passed in South Carolina allows Missourians to claim a refund for the increased portion of fuel taxes paid. The increase will raise $513.7 million.
SB 262 also:
- Raises the fee on alternative-fuel vehicles.
- Establishes an Electric Vehicle Task Force designed to create a long-term transportation funding plan amidst a rising number of electric and hybrid vehicles.
Long-time infrastructure advocate and President Pro Tem of the Missouri Senate Sen. Dave Schatz (R-26) sponsored SB 262. He and other state lawmakers, along with outside groups, rallied robust bilateral support. The state House of Representatives passed the bill 104-52, and the Missouri Senate by 21-13.
Virginia Senate Bill 890 (2020)
Virginia Gov. Ralph Northam (D) on April 2020 signed Senate Bill 890 (2020) into law raising the state gas tax by 10 cents-per-gallon over two years and indexes the tax to the average wholesale price of fuel. Senate Bill 890 amends numerous laws related to transportation funds, safety programs, and revenue sources. The bill also implements multiple structural changes to the transportation funding system in the Commonwealth. Over the next four years this bill is expected to have a total transportation expenditure and distribution impact of over $1.5 billion.
This study analyses the campaign to increase Virginia’s transportation investment and examines the major contributions made by the Virginia Transportation Construction Alliance, Gov. Northam, and Virginia legislators. This study also examines the opposing and supporting campaign strategies employed over almost a decade in the lead up the bill and analyses comparisons to the campaign ‘best practices’ TIAC has identified to help readers utilize strategies in their own state.
Arkansas Senate Bill 336 (2019)
Arkansas Gov. Asa Hutchinson (R) on March 12 signed into law legislation to raise the state gas tax by 3 cents-per-gallon and diesel tax by 6 cents-per-gallon (effective Oct. 1) and add an additional levy based on the average wholesale price of fuel. Senate Bill 336 also implements an annual registration fee of $200 for electric motor vehicles and $100 for hybrid motor vehicles, and transfers $35 million annually from casino revenues to the state’s transportation fund. The measure is projected to raise an additional $95 million annually for the state department of transportation and $13 million annually for cities and counties to use on local transportation projects.
This study analyses the campaign to increase Alabama’s transportation investment, examining who the major players were, why the state needed to increase revenue, and how organizations built a coalition and obtained bipartisan consensus. It explores several significant trends tracked by ARTBA-TIAC in recent years, including the importance of the governor acting as a champion of legislation, comprehensive research to support the need for increased funding, and more. Readers will walk away with best practices and strategies to utilize for their own state.
Alabama’s 2019 Transportation Funding Legislation
The Alabama legislature March 12 approved legislation with overwhelming bipartisan support that will help generate more than $300 million per year in additional transportation infrastructure investment. House Bill 2 (HB 2), also cited as the Rebuild Alabama Act, levied an additional 10-cents-per-gallon excise tax on gasoline and diesel. The excise tax rate will be adjusted by the percentage change in the average National Highway Construction Cost Index. This bill also levied an additional annual license tax and registration fee of $200 for battery electric vehicles and $100 for plug-in hybrid electric vehicles. Gov. Kay Ivey (R) signed the bill into law the same day.
This study analyses the campaign to increase Alabama’s transportation investment, examining who the major players were, why the state needed to increase revenue, and how organizations built a coalition and obtained bipartisan consensus. It explores several significant trends tracked by ARTBA-TIAC in recent years, including the importance of the governor acting as a champion of legislation, comprehensive research to support the need for increased funding, and more. Readers will walk away with best practices and strategies to utilize for their own state.
California’s 2017 Transportation Funding Legislation
California lawmakers on April 6 approved a plan to boost transportation funding by $5.24 billion annually through a combination of motor fuel and vehicle registration increases. The bill, which narrowly passed along mostly party lines, is projected to raise $52.4 billion over the first 10 years, which will be used to fund road and bridge maintenance and improvements, as well as transit and trail infrastructure.
New Jersey’s 2016 State Motor Fuel Tax Increase Legislation
On Oct. 7, 2016, New Jersey lawmakers approved legislation to increase the state gas tax by 23 cents-per-gallon and the diesel tax by 27 cents-per-gallon (effective Nov. 1, 2016) in order to generate $2 billion annually in new revenue for transportation infrastructure. Combined with matching federal funds and bonds, the legislation is expected to enable $32 billion in transportation investment over the next eight years. As a compromise to balance the tax increase, the measures also include several tax cuts.
South Carolina’s 2016 Transportation Funding Bond Measure
South Carolina lawmakers created short-term transportation funding legislation that utilizes over $200 million in existing fees to borrow approximately $2.2 billion to fund major interstate and bridge projects over the next decade. This 2016 bill also gives the Governor much more influence in the selection of members to the Commission of the Department of Transportation, which provides regulatory oversight to the use of transportation revenues included in this legislation.
North Carolina 2015 Transportation Funding Increase
In 2015, North Carolina state lawmakers prevented a dramatic motor fuel tax cut, eliminated Highway Fund transfers, raised Division of Motor Vehicle fees, increased the tax on out-of-state motor vehicle purchases, and permitted municipalities to increase their local vehicle sales tax. By doing so, the state raised a total of $1.2 billion in additional transportation revenue availability for Fiscal Year 2016-2017, including $440 million annually in new revenues.
Connecticut Transportation Bond- SB 1501 (2015)
Connecticut Gov. Dannel Malloy (D) signed into law on August 2 legislation to permit $2.8 billion in transportation bonds. The bonds will be used to fund the first five years of Gov. Malloy’s “Let’s Go CT” program, a 30-year plan to upgrade the state’s highways and bridges, expand the rail system and bus service, and improve airports, ports, bike and pedestrian paths, and freight systems.
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