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For Michigan Roads: 8 is Great!
November 10th, 2015 | By: Maria Matthews
Last week, Michigan’s legislature passed into law a 7.3 cent per gallon fuel tax increase becoming the 8th state in 2016 to increase investment in its transportation infrastructure. Today Governor Rick Snyder (R) signed this bill into law outside of the Michigan Infrastructure and Transportation Association headquarters. Today’s bill signing is at least one year in the making! Last fall, the legislature worked diligently to put together a package to increase road funding in advance of a projected harsh winter. Working long hours up to the last day of the 2014 session a committee of key legislators met with the Governor’s office to no avail. These negotiations were only able to yield a failed ballot measure in May of this year. Nonetheless, the two chambers went back to work while Governor Snyder continued to tour the state championing leading us to this long awaited moment in time. Michigan’s surface transportation currently has a backlog of needs due to decades of under investment. 22% of the state’s roads are in poor condition and 12% of the state’s bridges are structurally deficient. The state also made national news earlier this year because of its public transit system’s lack of service in Metro Detroit. To address these needs, the new law will raise the gas tax to 26.3 cents per gallon starting January 1, 2017. The first increase the state has seen since 1997. The additional tax revenue is expected to generate nearly $600 million in new revenue. Additional funds will come from the 20% increase in vehicle registration, which themselves have not increased in 30 years, and additional fees for hybrid and electric vehicles. Additional road funding will come from a shift in funds from the general fund beginning with a $150 million transfer in the 2018-19 budget reaching a maximum of $600 million by 2021. When fully implemented it is expected the package will generate $1.2 billion. The tax increase and higher fees are expected to be offset by a yearly reduction in personal income taxes beginning in 2023 and property tax credits. While the net effect of today’s bill signing is still a few years in the making, Michigan is off to a good start. Increased investment means safer roads and bridges for commuters and the potential for economic growth as businesses can more readily get their goods to market. We applaud Michigan’s legislative body and the Governor have who have helped chart a course toward better and safer future.Voters say “Yes” to Infrastructure on Nov. 3
November 4th, 2015 | By: Maria Matthews
Although 2015 may be an “off” election year, many states still held elections on critical issues. While some voted for Governor, state legislators and mayor, voters in Louisiana, Maine, and Texas were asked to make important decisions about the future of their state’s infrastructure. Transportation was the theme of this year’s ballot measure and if you’ve ever experienced a bumpy ride to work or gridlock on a recent road trip, you can probably understand why. States are using the fall elections to get voter feedback on the steps to take. Here’s what the election night returns say:- On October 24, Louisiana voters approved a measure to create an infrastructure bank in the form of Question 2. This ballot measure granted the legislature to allocate revenue sources to fund a “state infrastructure bank” for the purpose of funding transportation projects. A second ballot initiative on infrastructure, Question 1 was rejected by voters. The measure asked voters to allow the legislature to designate a portion of excess mineral tax revenue to the Transportation Stabilization Fund. Even though the measure would not have created an additional tax burden on Louisianans, it was still rejected.
- Maine put Question 3 before its voters asking them to approve an additional $85 million for transportation projects. Mainers said “yes” to invest in the construction, maintenance and rehabilitation of a number of sectors of Maine’s infrastructure including roads, ports, freight and passenger rail, and airports. It is estimated that the state’s $85 million bond could result in an approximately $121.5 million match in federal and other funds.
- Texas had two infrastructure related measures to put before voters – who said yes to both! Proposition 7 builds upon the funding provided for by the passage of Proposition 1 in 2014. This measure will designate a percentage of sales tax and motor vehicle sales, use and rental taxes to the state highway fund. This particular revenue stream would specifically be used to fund non-toll roads and reduce certain types of transportation-related debt. Meanwhile, Proposition 5 increases the population cap to enable of small counties (a population of 7,500 or fewer) to authorize private road development and maintenance.
State Legislators Tell Their Peers It is Possible to Raise Gas Tax, and Give them Guidance on How to Do It
August 13th, 2015 | By: Maria Matthews
State legislators from around the country were in Seattle last week for the annual National Conference of State Legislatures (NCSL) Legislative Summit. Approximately 5,000 state legislators, legislative staffers, federal officials and others attended the meeting to gain invaluable knowledge from experts and fellow legislators to take back to their respective states. Attendees participated in an array of policy-producing committee meetings, issue forums and deep-dive sessions. Transportation funding remains a hot topic for state lawmakers, and the conference featured a “deep-dive” session entitled “Filling Up the Tank: Funding Transportation,” which provided legislators a forum to discuss developing sound transportation plans in their states that create sustainable revenue, prepare for the future and meet immediate needs. Rep. Judy Clibborn, a Democrat who chairs the state’s House Transportation Committee and Senator Mike Vehle, a Republican from South Dakota who has been a leader on transportation issues as well, gave a joint presentation on how their respective states were able to pass gas tax increases. The lawmakers identified some common steps that need to be taken to generate support for, and achieve passage of major transportation funding legislation. Those included:- Generate bipartisan support, specifically through the work of a legislative task force made up of members of both parties.
- Build a coalition of allied interest groups including the business community.
- Support from the Governor and State Department of Transportation is vital.
- Determine the state’s financial need, and set goals before discussing increasing taxes.
- Take the discussions on the road – hold meetings around the state to discuss the need for transportation investment.
- Flexibility and compromise also important.
July 1 is a Green Light for OReGO Program
July 1st, 2015 | By: Maria Matthews
Contributed by Jason Magalen, P.E., M.ASCE, Oregon Section ASCE President 2014-2015
Oregon has a history of being a trailblazer when it comes to funding the cost of surface transportation. It was the first state to enact a fuel tax back in 1919 and didn’t stop there. Over the decades the state has completed a number of studies to determine the impact of vehicles on its roads. In 2001, the legislature formed the “Road User Fee Task Force” to explore innovative ways of meeting the maintenance and improvement need of the state’s transportation system. It was this panel that leads us today’s launch of the OReGO program.
OReGO is a first of its kind program through which volunteers will pay a road usage charge for the amount of miles they drive, instead of the standard fuel tax. How does this work? Well, the current usage charge is set at 1.5-cents per mile. Participants will receive a credit on their tax bill to offset the fuel taxes paid at the pump. If you drive an electric vehicle you’ll simply pay the per mile usage charge without the fuel tax offset.
The program rolls begins accepting volunteer applications (up to 5,000 participants) beginning today, July 1, 2015, and I’m proud to be one of them. My decision to participate was based on personal and professional reasons: On a personal level, I feel we all need to contribute to the maintenance and repair of the property we use. On a professional level, civil engineers need to be advocates for ensuring our infrastructure maintenance and repair is adequately funded into the future. You can check out how the pilot program has impacted others who have opted in, including the firsthand account of a state legislator.
Participation is as simple as a completing an interest survey and selecting a service provider to track your mileage. When you receive your device simply plug it in and drive! The device is attached to a credit card and will bill you based on the number of miles you drove during a given period and, of course, receive a credit for any fuel taxes paid during the same period. I’ll be plugging mine in today.
If your immediate thought is “I don’t want the state to track when and where I’m driving,” I had similar apprehensions. There are several available options, though, and volunteers have the ability to select the device, reporting/monitoring, and payment program that fits his/her needs and desired privacy level. He can opt to have “GPS enabled” or non-GPS devices record his miles. The advantage of a “GPS enabled” device is that she will only be charged for miles traveled within the State of Oregon’s borders.
Many of the current comparison models contrast a fuel efficient hybrid with a heavy duty pick-up truck using the average mileage recorded by Oregonians like you and me. Under this model the hybrid driver would pay a little more in user fees but, reap savings in overall fuel costs while the pick-up truck driver would see benefits on both sides via the fuel tax credit applied toward user fees. If you think you might be able to put some cash back in your pocket while still funding our roads check out the monthly cost calculator.
All net revenue generated from road usage fees will be deposited directly into the State Highway Fund. The State Highway Fund is currently distributed 50 percent to the state, 30 percent to counties and 20 percent to cities. It is important to remember that all vehicles are treated the same under the OReGO program. With the exception of a credit received by vehicles that fuel up, the more vehicles that participate in OReGO the more opportunities for Oregonians to share the cost of using our roads.
Special Sessions Tackle State Infrastructure Needs
June 25th, 2015 | By: Maria Matthews
![ph1[1]](http://www.infrastructurereportcard.org/wp-content/uploads/2015/06/ph111.jpg)
With summer upon us, many state legislators are finding themselves stuck in “summer school” in order to hammer out bills to address growing infrastructure needs.
With the exception of a few states who meet year-round, most state legislatures will convene anywhere from 60 to 100 days. Unfortunately, this year many of states with short sessions now find themselves working well into the summer months in order to reach common ground on bills that will fund surface transportation in their state.
Whether is sticking it out at the state house beyond their required adjournment date or being called back by the Governor until a deal is reached, a healthy handful of states find themselves working tirelessly to find a solution. Our summer watch list includes: California, Illinois, Maine, Oregon, South Carolina, and Washington.
- California’s Governor Jerry Brown called for a two week special session to focus on the state’s investment in transportation infrastructure. With the state facing a number of competing proposals—and needs—the hopes is to develop a long-term and sustainable funding solution. From high speed rail to road repair, Governor Brown is looking to the legislature to deliver a package that will improve public safety and secure the state’s economic future.
- Illinois finds itself in an extended regular session as it moves to reach a balanced budget that includes transportation and water infrastructure funding. At present the legislature is delivering budget bills in piecemeal fashion as it finds itself at an impasse with the Governor’s Office. The 2016 fiscal year begins on July 1, 2015 and without a budget in place Governor Rauner has indicated program cuts would begin to take effect. Up to now, it is expected the Department of Transportation will not be affected.
- Maine, like Illinois, finds itself in the middle of a larger budget battle. The most recent proposal was met with a number of vetoes (and later veto overrides) including the separate highway and transportation budget. Governor LePage removed $2.9 million in line items from the state’s transportation that will require additional votes in the state Senate to be restored. This after a number of promising bills that would have established study commissions to assess the overall condition of the state’s surface transportation systems did not advance.
- Oregon with its Vehicle Miles Travelled (VMT) program set to start July 1, 2015 the legislature is still in discussions with Governor Kate Brown over funding $200 million in roads repairs through a 4-cent gas tax increase. With rumors a deal is near we expect that Oregon legislators will be among the first to head back their home districts.
- South Carolina’s legislature burned the midnight oil in Columbia and reached that will allocate an additional $216 million to fund county road maintenance and repairs beyond the $71 million already distributed among counties from their portion of the state gas tax. The transportation budget also includes the potential for $500 million in state bonds for large highway projects. The bill has been sent to Governor Nikki Haley for signature as legislators prepare to return home for the summer.
- Washington State’s legislature has already push through and received Governor Inslee’s approval on the operating portion of the Department of Transportation’s budget. The legislature nearing the end of its second special session, has again stalled when it comes to reaching agreement on a funding measure. While there was consensus for the package that included a 11.7 cent per gallon gas tax increase during the regular session, discussion that would lead to revenue generation for highways, bridges, and ferries, have been put in a holding pattern behind larger budget negotiations.
Michigan Back to Square One to Fix Roads
May 6th, 2015 | By: Maria Matthews
On May 5 voters from Detroit to Marquette resoundingly opposed the idea of a change to the state constitution invest in better and safer roads. In an 80% to 20% vote Michiganders opted to consider “Plan B” rather than enact a slight increase in sales and fuel taxes that would have raised $1.3 billion for road maintenance and improvements.
Ensuring adequate investment in Michigan’s roads has been a long time goal for Gov. Rick Snyder. He had this to offer after yesterday’s poll results came in:
“It’s essential that making Michigan’s infrastructure safer remains a top priority. While voters didn’t support this particular proposal, we know they want action taken to maintain and improve our roads and bridges. We appreciate that this bipartisan plan was supported by so many groups – business leaders and unions, public safety officials and local governments, teachers, and the list goes on. I plan to work with my partners in the Legislature on a solution that gives Michigan residents the safe roads they need and deserve and bolsters our growing economy.”
No matter what path is used to move Michigan forward, the sentiment from voters and policymakers alike is that something must be done to improve roads. There is general consensus that the state must act now. In this vein the Governor and legislators have begun to get to work on a viable alternative to Proposition 1. There are currently 10 plans in varying stages of development that could help Michigan meet it transportation infrastructure needs. Options range from vehicle-miles traveled to toll roads to a gas tax increase that would focus exclusively on fuel (rather than packaged together with other tax code changes as appeared on Tuesday’s ballot).
While defeat is never an easy pill to swallow, the time is now to regroup and continue to urge action. ASCE’s Michigan Section along with a number of municipal, agriculture and business groups came together to advance the idea of road funding and will extend their campaign until a solution is achieved. Carey Suhan, PE, President of the Michigan Section of the American Society of Civil Engineers also offered these thoughts on the rejected ballot measure:
“Michigan’s roads and bridges are among the worst in the nation because of underinvestment for the past five decades. As civil engineers, we witness the challenges of trying to run a 21st century transportation network using an outdated funding source. Unfortunately, Michigan voters chose to continue this trend in underinvestment, meaning our state will continue to have poor road conditions. It is now up to our elected leaders to offer another solution to improve Michigan’s roads, bridges and public transit.”
The current condition of Michigan’s roads and bridges was recently assessed by TRIP, a private nonprofit organization that researches, evaluates and distributes economic and technical data on surface transportation issue, found that Michigan’s underinvestment in recent years has resulted in further deterioration of its roads – there’s been a 23% increase in the percentage of major roads in poor condition. What’s scarier is this number is projected to increase to 53% by 2025 if the state and localities cannot keep up with regular maintenance and improvements.
If Michiganders want smoother and safer roads in the years to come, adequate revenue must be collected and allocated to maintain and improve the state’s transportation infrastructure now. With many other states taking action recently, Michigan will only fall further behind if lawmakers do not implement another plan quickly, Investing in better roads mean safer daily commutes and a brighter future for the state’s economy.
Tags: gas tax, infrastructure, Michigan
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Raising Revenue for Infrastructure: Who will be next?
April 14th, 2015 | By: Maria Matthews
Whether it’s been increased, decreased, or frozen the 2015 legislative session has seen a high level of activity from states attempting to modify their gas tax to keep up with their infrastructure needs. We’re keeping a close eye on the nearly 40 states that are still in session and hopeful they will vote “yes” for infrastructure time and again. Among the states to watch closely are Michigan, Missouri, Nebraska, New Jersey, South Carolina and Washington. All have hinted they might take action this year. Here’s what to expect and watch for:- Michigan has put its funding decision in the hands of voters. They’re being asked to go to the polls on May 5th to raise the sales tax by 1% and increase vehicle registration fees. The legislature doesn’t adjourn until December so in the event the ballot measure fails, the state lawmakers will likely head back to the drawing board.
- Nebraska’s legislature is two rounds of voting away from a phased in 6-cent per gallon increase. The bill may meet opposition from the Governor, if it clears the legislature. Its next hurdle would then be a veto override.
- New Jersey is in the unusual position of having to raise revenues to preserve its Transportation Trust Fund The fund is expected to run dry sometime this summer and will indeed impact the way The Garden State maintains its highways and bridges.
- South Carolina has a number of proposals on the table. More importantly than the number of options being considered is the fact that the Legislature and the Governor will need to find common ground when it comes to raising additional revenue for roads. In her State of the State Address, Governor Nikki Haley indicated she would support no more than a 10-cent per gallon tax increase and only if there were offsets in other areas to keep the state competitive with its neighbors.
- Washington state’s legislature has proposed an 11-cent per gallon increase as part of a larger transportation funding package that would also increase a number of driver fees. With a projected adjournment date just around the corner, April 26, hopefully they will finish their work with decisive action for transportation investment.
Tags: Michigan, Nebraska, New Jersey, South Carolina, state, state government, Washington
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Seven States Say “Yes” to Gas Tax Modifications
April 13th, 2015 | By: Maria Matthews
Seven state legislatures used this year’s session to address infrastructure investment. These states used a variety of available revenue sources to raise money for their aging roads and bridges. No matter what sort of package these states put together, the common thread was that they all included an adjustment of the gas tax.
ASCE supports an all options on the table approach to ensuring transportation infrastructure receives adequate funding. States that followed suit and pushed through funding measure that included gas tax increases include:
- Georgia – Governor Nathan Deal signed a $1 billion transportation funding package approved by the General Assembly on March 31. The bill converts the current state sales tax on gas to an excise tax set at 26-cents per gallon for passenger vehicles and 29-cents per gallon for commercial vehicles among other fee increases. Despite the size of the package, it is estimated that much of the newly generated revenue will be directed toward the maintenance and improvement of existing roads.
- Idaho – Idaho extended its legislative session for the purposes of addressing its funding shortfall. After pushing through competing proposals, the two chambers came together in a last-minute conference committee to achieve a 7-cent increase effective July 1, 2015 and a combination of increase user fees and access to available funds from future budget surpluses. While a great stride for Idaho, unfortunately, this bill will only generate an estimated $94 million of the $262 million in additional funding the state needs. (This bill is currently awaiting Governor Butch Otter’s signature.)
- Iowa – The first and fastest to act on an increase to their gas tax. While the vote was many years in the making, both chambers consented to raising the gas tax by 10-cents per gallon within a matter of hours. Governor Terry Branstad signed it into law the next day and four days later more money was being raised for transportation projects. The revenue generated by this increase will be used to fund the maintenance of Iowa’s structurally deficient bridges and provide an additional revenue stream for transportation projects at the local level.
- South Dakota – Governor Dennis Daugaard signed into law a 6-cent per gallon gas tax increase effective on April 1. It is estimated the increase in the gas tax and other motor vehicle fees will generate $85 million a year for state and local transportation projects. The measure also creates a “local bridge improvement grant fund” through which some of the newly generated revenue will be distributed.
- Utah – Utah was the second state to approve a gas tax increase in 2015. The increase goes into effect January 1, 2016. It will also continue to increase in future years using a system similar to the state’s sales tax. The bill also imposes a 12% tax on the wholesale price of gas when the price of gas reaches $2.45 a gallon and the overall gas tax rate been capped at 40-cents. Utah has made a number of positive investments in its transportation systems in recent years and this increase will ensure the state can plan accordingly for wear-and-tear and meet the needs of the growing population.
- Kentucky –The legislature here voted to freeze its gas tax at 26-cents per gallon. While this is about a 1.5-cent per gallon decrease, it avoids a projected 5.1-cent per gallon decrease in upcoming months. The legislature also used this measure to modify its funding formula in the hopes of preventing future dips.
- North Carolina – In a single day, the legislature passed and the Governor signed a 1.5-cent decrease in its gas tax effective April 1 and a reduction to 34-cents per gallon by January 2016. While this will not raise funds immediately, like Kentucky’s freeze, this measure will prevent a dramatic drop in the rates later this year. A new formula for calculating the gas tax will take effect on January 1, 2017 and is expected to result in additional revenue, in the form of a projected 2% increase per year, for the state’s Highway Trust.
Michigan Legislature Defers to the Public on Gas Tax
December 22nd, 2014 | By: Maria Matthews
Photo Credit: Sean Marshall/Flickr
- Increases vehicle registration fees by eliminating the 10% discount made available to new car buyers during their first three years of ownership.
- Raises registration fees for commercial trucks, hybrid and electric vehicles.
- Designates a portion of the additional revenue for transit.
- Eliminate all sales or use taxes on gasoline and diesel fuel used in motor vehicles operated on public roads or highways beginning on October 1, 2015;
- Allow an increase in the sales tax rate from 6 percent to 7 percent;
- Activate other laws dedicating additional revenue for transportation purposes, including repair of roads, streets, and bridges;
- Require state funds for school aid to be used exclusively for financial assistance for public school districts, community colleges, and career and technical education and related scholarships; and
- Dedicate a portion of use tax revenue for school aid purposes.
Tags: gas tax, infrastructure, roads
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State Legislators Come Together to Discuss Infrastructure Issues
December 15th, 2014 | By: Maria Matthews
State legislators and legislative staff from around the country gathered in Washington, DC last week to share innovative solutions to the pressing problems facing states, and infrastructure issues were among the topics they tackled. During National Conference of State Legislatures (NCSL) annual Fall Forum, several sessions focused on infrastructure issues that are facing state policymakers. Department of Transportation Secretary Anthony Foxx told those in attendance that long-term, bipartisan solutions are needed to address the nation’s infrastructure needs. Lawmakers heard from representatives of the National Association of Regulatory and Utility Commissioners about resiliency efforts in the states to protect critical infrastructure during natural disasters. Rep. Linda Harper-Brown of Texas led a discussion on how states can utilize public-private partnerships to finance transportation infrastructure projects by understanding various revenue and financing approaches, and evaluating the policy implications and potential benefits and risks of partnering with the private sector. Another session focused on managing water concerns through hydraulic fracturing. The session educated legislators on how this process works, what chemicals are used and what this means for water quality in the states, as well as what legislatures are doing to protect water quality. NCSL’s National Resources and Infrastructure Committee developed these sessions. The committee is one of nine NCSL Standing Committees that educates Congress and federal agencies about state concerns and serves as a forum for state legislators and legislative staff to learn about and share information regarding programs and initiatives in other states. In particular, this committee has jurisdiction over state and federal energy, environment, agriculture and transportation programs, legislation, regulations and policies. As we have seen in recent years, the lack of action by Congress on infrastructure issues has resulted in the states continuing to take the lead, and meetings hosted by NCSL and the Council of State Governments (CSG) provide valuable venues for state policymakers to exchange information and ideas on these critical issues. ASCE has maintained partnerships with both of these organizations to help serve as a resource for state legislators during these discussions.
