To be fair, the gas tax wasn’t performing to meet infrastructure needs before COVID either.
What is the American Association of State and Highway Transportation Officials advising?
- The believe in a user-pay principle where the amount you drive determines what you’re paying, but COVID shows the weakness in this plan too
- A solution: Federal COVID funding relief package
How is COVID impacting transportation revenues?
- Maryland is cutting $3 Billion form its transportation plan
- California estimates a revenue hit of $1.2 Billion that will hit primarily transportation projects
- This fall, New Jersey law required an automatic rise in the gas tax by 9cents because of low revenues
- National League of Cities survey of its members say 65% are delaying or canceling capital expenditures and infrastructure projects
- Pennsylvania Department of Transportation estimates $550 million in losses
- Oregon has a diversified transportation funding system with 35% coming from a tax on trucks and has fared better
Smart Cities Dive | The gas tax was already broken. The pandemic could end it.