What happened: During a Dec. 14 orientation for new members of the State House, newly-elected Alabama Gov. Kay Ivey (R) highlighted the state’s 2019 transportation funding legislation as a model of bipartisan success, noting “as most of you can imagine, telling folks you’re going to increase taxes even when it’s absolutely necessary is never a popular vote…you had to block out a lot of noise. And after all, it’s easy to criticize meaningful change before its impact is made apparent.”
Why it matters: The Rebuild Alabama Act, passed in March 2019, was the first increase in the state’s motor fuels tax since 1992, levying an additional 10 cents per gallon. It also created an automatic rate adjustment allowing the tax rate to adjust annually with changes in the National Highway Construction Cost Index (NHCCI), as well as new fees for electric and hybrid vehicles. The increased funding has allowed Alabama to accelerate projects across the state. For example:
- The Alabama Department of Transportation (ALDOT) announced Dec. 6 it was moving forward with its Mobile River Bridge project regardless of the availability of federal resources to help offset project costs.
- $383 million in transportation projects are underway in the Huntsville area, including $85 million to widen U.S. 72.
Lawmakers reported the state brought in an extra $2 billion in overall tax revenues this year, in part fueled by gas tax collections.
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