What happened: The six-year Maryland Consolidated Transportation Program (CTP) released Dec. 5 proposes several cuts in order to close a projected $2.1 billion transportation funding gap. The Maryland Department of Transportation (MDOT) plans an eight percent operating budget cut to all modes, as well as additional reductions to all modes’ capital programs.
Why it matters: MDOT, facing pressure from dwindling transportation revenue sources, is required to present a balanced budget to the state legislature. To do so the agency suggests removing funding for any construction expansion project not advertised by the end of 2023, and possibly reducing funding for system preservation, if needed. The agency chose to prioritize meeting federal match requirements to leverage all federal funds available.
What’s next: The plan will be reviewed by the state legislature during the 2024 legislative session. Meanwhile, a commission to evaluate and make recommendations on the state’s transportation revenue will make its initial recommendations to the state legislature on Jan. 1, 2024, with a final report due on Jan. 1, 2025. In the CTP final report Transportation Secretary Paul J. Wiedefeld recommends fixing the state’s funding program in order to solve the current challenges and provide long-term solvency for Maryland’s transportation program.
Further reading:
Other states identifying transportation funding shortfalls:
- Nebraska’s 20-year highway needs estimated to cost 15 percent more than previous estimates.
- Wyoming Department of Transportation faces a $400 million annual shortfall.
- Arizona 25-Year transportation funding gap grows to $162.3 billion.
- Washington State Department of Transportation and Oregon Department of Transportation warn that dwindling revenue could impact their ability to maintain and improve transportation infrastructure.
- California Legislative Analyst Office report warns the state faces a $4.4 billion revenue shortfall in the next decade if it pursues its transportation emissions reduction goals.
- Georgia Commissioner of Transportation Russell McMurry on Dec. 13 warned the state needs $81 billion in transportation improvements by 2050 in order to keep up with freight growth, a significant increase from the $26 billion in projects currently planned.