What happened: Louisiana lawmakers June 10 approved the gradual transfer of up to 60 percent of annual state sales tax on vehicle purchases to the transportation fund. The revenue is currently deposited in the state’s general fund. The transfer is expected to generate up to $300 million per year, with 25 percent allocated to maintaining existing infrastructure. However, if general fund revenue collections decrease $100 million or more from forecast amounts, then the transportation fund transfer would be capped at $150 million for that year.
Why it’s important: Louisiana is facing a growing backlog of $14 billion in unfunded transportation projects. The state has identified $6.9 billion in needed repairs to more than 3,200 bridges, according to ARTBA’s bridge report.
What’s next: The measure heads to Gov. John Bel Edwards (D) for approval or veto. Critics warn that removing the revenue from the general fund could affect other areas of the state budget.