What happened: A provision to withhold local transportation funds from cities that failed to increase housing density along major transit routes was removed from pending legislation April 23 after significant pushback from investment advocates. The requirement would have affected 31 local governments and jeopardized an estimated $151 million in state Highway Use Funds.
Additionally, on April 29 a lawsuit challenging Colorado’s 2021 transportation funding package was struck down by a district judge. Opponents of the law argued it violated the state’s Taxpayers Bill of Rights (TABOR), which requires voter approval for any new or increased taxes. They also cited Proposition 117—a cap on new fees of $100 million or more over five years collected without voter approval. The judge ruled that because the legislation specifically added separate fees instead of taxes, each of which individually generate less than the Prop 117 limit and are designated for specific purposes, the transportation funding package can stand.
Why it matters: Attempts in other state legislatures to pull back transportation funding have also failed to gain traction this year:
- A provision to move $60 million from Maine’s transportation fund to the general fund was removed on April 15 after receiving opposition.
- A proposed transfer of $5 million annually from the Alabama Department of Transportation to the state’s Department of Economic and Community Affairs was rejected on April 17.
What’s next: Follow the ARTBA-TIAC blog for updates on state and local transportation funding.