As state legislative sessions get underway, transportation funding shortfalls are emerging as a central issue across several states.
In his Jan. 20 budget address, Vermont Gov. Phil Scott (R) proposed shifting a tax on new vehicle purchases from the General Fund to the Transportation Fund. The tax generates approximately $10 million annually and would help address part of the state’s $33 million gap to maximize its federal transportation funding match. The state risks losing up to $163 million in federal transportation funding without the match. To close the remaining shortfall, the agency proposed eliminating 31 additional department of transportation staff positions—on top of 31 positions cut in September—along with spending reductions affecting rail, aviation, rest areas, and salt usage.
In Alaska, lawmakers penned a Jan. 20 op-ed warning the state risks losing federal transportation matching funds without new revenue. They cautioned that up to $600 million in federal investment could be at stake if the issue is not addressed.
Idaho Gov. Brad Little (R) on Jan. 19 proposed a $275 million one-time reduction to the state’s transportation program and the diversion of $45 million in dedicated transportation revenue to the General Fund to close a budget shortfall. The Idaho Transportation Department said the cuts would shift the agency’s focus to preservation and operations and could delay the start of new projects.
In Tennessee, Department of Transportation Commissioner Will Reid warned lawmakers that the state faces an estimated $58 billion in unmet transportation needs. Lawmakers discussed potential solutions during the meeting, such as enabling bonding authority or a one-time revenue infusion.