What happened: Several states announced transportation funding concerns in the first month of the new year, including:
- New Jersey is facing a June 30 deadline to renew the state’s Transportation Trust Fund. Several options are being discussed, including a new electric vehicle fee.
- Massachusetts Gov. Maura Healey (D) on Jan. 24 authorized the creation of a Transportation Financing Task Force, charged with studying long-term funding solutions for the state’s transportation system. The task force will provide recommendations by the end of the year.
Why it matters: Both New Jersey and Massuchusetts recently passed rules banning the sale of new gasoline-powered cars beginning in 2035.
Meanwhile, an annual report from the Tennessee Advisory Commission on Intergovernmental Relations released in January found the state has $34.7 billion in transportation infrastructure needs. Recent legislation has slowed the growing funding gap, but declining revenue sources will create pressure for the state to find long-term recurring revenue solutions.
What’s next: Eleven other states have recently warned of impending transportation funding challenges. States we are keeping an eye include:
- Mississippi Department of Transportation requests additional revenue to support its capacity program.
- Louisiana transportation funding backlog has grown to $19 billion.
- Kentucky unable to meet nearly $40 million requests to repair local roads because of a lack of funding.
- Maryland Transportation Plan Proposes Cuts
- 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.