What happened: After debating competing proposals, Maryland legislators April 3 reached agreement on a plan to raise much-needed transportation revenue. The compromise plan implements new electric vehicle and plug-in hybrid fees; increases work zone speeding fines; raises vehicle registration weight fees; and adds a new Transportation Network Company (TNC) fee. It is being rolled into other spending bills aimed at raising revenue for education purposes.
Why it matters: The compromise package is estimated to generate up to $350 million in transportation revenue annually once fully implemented. It follows several recent challenging developments to the state’s transportation fund, including cuts to the state’s capital program at the end of 2023 and the March 26 collapse of the Key Bridge.
What’s next: Gov. Wes Moore (D) has previously voiced opposition to a large tax increase this year, but indicated he was favorable to the current compromise. The bill will go up for final vote in the General Assembly on April 4 before going to the Governor for enactment. Follow the ARTBA-TIAC Funding Dashboard for legislative developments.