Tag: Gas Tax

As reported in the Washington Post, Maryland Governor Martin O’Malley recently renewed his commitment to introduce a transportation funding bill in this session of the Maryland General Assembly.    This is very good news.  Transportation advocates have been pushing for an increase of $850 million or more, consistent with the recommendations of an earlier Blue Ribbon Commission report for several years, to address the precipitous decline in transportation investment that has occurred over the past two decades.  

Governor O’Malley correctly assessed the situation when he said:  “Doing nothing doesn’t seem to be a responsible option.”  He is absolutely right and Maryland legislators need to acknowledge this fact and act this year.  There will not be another opportunity, with statewide elections looming in 2014.

Maryland’s transportation system is in critical condition right now, with deteriorating roads and bridges and the nation’s worst traffic congestion in the Washington region.  Failure to act this legislative session will bring dire consequences for our local economy.  Without a major infusion of capital funding, traffic conditions will soon reach a breaking point.  Given the continued weakness in the state’s economy, and the inability to attract new jobs to key areas in the state without providing additional transportation capacity, this is the single most important thing on the legislature’s agenda this year because investing in transportation means jobs, jobs, jobs.

Recent polls by the Washington Post and others show that, on the surface, raising the gas tax appears to be unpopular, as is the case with most other taxes.  However, these polls do not go beyond the surface level to ask if support would increase if the legislature also added a “lock box” to protect the Transportation Trust Fund from future raids, and if voters knew a 10-cent gas tax increase would cost each resident an average of $50 per year, far less than the wasted fuel and other costs each of us is currently paying due to congestion and poor road conditions — a staggering $1,500 per resident per year in Maryland, which is a direct result of continued failure to invest in key transportation improvements.  When given these two pieces of information, support for a 10-cent increase soars in more detailed polling at the state and national level.  Voters want more investment in transportation, and when they hear the case being made they find it persuasive. 

Let’s face it, there is never an easy time to raise revenues from any source, but the gas tax has not been adjusted since 1992 and has lost more than half its value to inflation.  Maryland residents are paying less now in gas taxes in real dollars than they did in the 1970s, and current funding levels are simply no longer economicially sustainable, so now is as good a time as any to bite the bullet and do what they know is right.  Without an increase this year, major projects like the Purple Line and the Corridor Cities Transitway, or much needed improvements to Route 4, Route 5, I-270 and hundreds of others SIMPLY CANNOT MOVE FORWARD. 

It’s time to raise the gas tax and index it to inflation now! 

Visit our Action page to sign our on-line petition to “Invest Now!” in our transportation future.     

Maryland’s Blue Ribbon Commission on Transportation Funding, appointed by Governor Martin O’Malley to come up with recommendations to address Maryland’s transportation funding crisis, is close to wrapping up its work.  Its recommendations will be finalized at their October 25th meeting, then conveyed to the Governor and state legislators.  According to the preliminary draft presented to the Commission this week, a package of some $870 million in new transportation investment is being recommended.  This is welcome news! 

Key elements of the package appear to be:  Protecting the Transportation Trust Fund from further “raids” for non-transportation purposes; a 15-cent increase in the Maryland gas tax (phased in over three years in 5-cent increments); and other increased vehicle fees and transit fares.  Lt. Governor Anthony Brown, along with the County Executives from Montgomery, Prince George’s and Howard Counties and the Mayor of Baltimore, have all publicly expressed support for increased transportation funds to pay for needed safety and congestion-relief improvements.  Currently, each Maryland resident is paying almost $1,500 a year in wasted fuel and extra maintenance as a result of crumbling and overcrowded roads, bridges and transit facilities.  In contrast, each 5-cent increase in the gas tax will only cost the average family about $25 per year, well worth the savings in time and money.

Ramping up Maryland’s decimated transportation capital program would also put thousands of local engineering and construction workers back on the job (and back in Maryland stores and restaurants), providing a major boost to our sagging economy.  SMTA strongly supports the kinds of proposals the Commission seems ready to recommend, and calls upon the Maryland General Assembly to enact new dedicated transportation funds and restore the “trust” in the Transportation Trust Fund in this next session of the legislature, which starts in January.  

Read more on the Blue Ribbon Commission website. 

  

The Senate has finally acted to extend the authorization for federal spending on the Federal Aviation Administration (FAA) and other vital transportation programs, including roads, bridges, and mass transit projects all over the United States.   The bill extends the FAA’s operating authority through January.  Highway and transit programs, and the federal gasoline tax that pays for most of them, were all due to expire on Oct. 1, but now the deadline has been extended through March of 2012. 

Expiration of the federal gas tax would deal a crippling blow to what is left of Maryland’s transportation program, but the threat is not removed, only deferred.  A long-term solution to transportation funding at the state and federal levels remains one of our top priorities, especially in light of our troubled economy.  Continued pressure needs to be directed to our elected officials to support increased investment in transportation capital projects that put people back to work and add lasting economic value to communities.  This is key to getting us out of the current recession.

 

With area transportation funds dwindling, and legislators shirking their responsibilities year after year to ensure that dedicated revenues for transportation (like the gas tax) keep pace with inflation and population growth, State officials across the region have little choice but to raise toll rates.  So here is what is coming: 

The toll man cometh

Reason
Tolls for two-axle vehicles

Maryland

 Rate before July 1, 2011 As of Oct. 1, 2011 As of July 1, 2013

Hatem Memorial Bridge

 $10/year with decal, $5 for trip

 $72/year EZPass plan to replace decal, $6 for trip

 $8

 $132 million in repairs needed
Bay Bridge $2.50

 $5

 $8

 $225 million needed to maintain Bay Bridge over next six years
Nice Bridge $3

 $5

 $8

 $21 million in repairs needed
I-95 Turnpike (Kennedy Highway) $5

 $6

 $8

 $121 million needed for highway work
Francis Scott Key Bridge $2  

 $3

 $4

 $410 million needed for combined work on Fort McHenry, Francis Scott Key and Baltimore Harbor Tunnel repairs
Baltimore Harbor Tunnel $2

 $3

 $4

 see Key Bridge
Fort McHenry Tunnel

 $0.90

 $2.70

 $3

 see Key Bridge
ICC $1.45/peak, $1.15/off peak/$.60 overnight

 Only toll exempt from raise

Virginia Current

 Jan. 1, 2012

Dulles Toll Road

 $0.75

 $1.50

Dulles Greenway

 $3.70 ($4 during peak hours)

 $4.50 ($4.80 during peak hours)

The choice we face is clear.  We can: (a) pay a few pennies more at the pump, (b) get used to a lot more tolls and higher transit fares, or (c) watch roads, bridges and transit service deteriorate to the point where the region becomes unliveable, major employers leave, and our economy tanks like Detroit.   Some combination of (a) and (b) would be a lot less damaging to our economy, business climate, and pocketbooks than option (c).

Maryland State Senator Robert Garagiola, the chief sponsor of key transportation funding bills during the 2011 General Assembly Session, addressed the SMTA Board this week and reported back on the progress that was made this year in Annapolis, calling the overall result “a few steps forward and a few steps back.” 

Garagiola is also a member of Governor Martin O’Malley’s Blue Ribbon Commission on Transportation Funding, and discussed with the SMTA Board the status and future direction of the Task Force.  Sen. Garagiola was instrumental in leading what proved to be an unsuccessful fight for increased transportation revenues in Annapolis this year.  His efforts were made that much harder by external events, such as the instability in the Middle East and resulting short-term spike in fuel prices.    Discussions are now underway to raise the issue of Maryland’s ongoing transportation funding crisis during the upcoming special session on redistricting, and Senator Garagiola indicated he would continue to press for solutions.

Task Force Issues Call to “Restore Trust” in Transportation Trust Fund

This week Maryland Governor Martin O’Malley’s Blue Ribbon Commission on Transportation Funding issued a strongly worded report to the Maryland General Assembly, highlighting the urgent need for additional funds.  View the full report here. 

Included in the Appendices are several interesting charts and data tables, including one listing the nearly $1 billion that has been diverted from the Transportation Trust Fund and not paid back (mainly from the localities’ Highway User Fund accounts), and a menu of options for legislators to consider in coming up with the $800 million that is needed.

The Task Force is also asking legislators to maintain the current portions of both the sales tax and corporate income tax that are currently dedicated to the Transportation Trust Fund.

A new report issued by The Road Information Project (TRIP), a national transportation think-tank, highlights the cost to Maryland citizens of the Free State’s continued failure to invest in its surface transportation network.

According to the report, “with the state’s population continuing to grow, Maryland must improve its systems of roads, bridges, and public transit to foster economic growth, keep business in the state, and ensure the safe, reliable mobility needed to improve the quality of life for all residents.” 

Among its key findings:

  • 44% of the major roads in Maryland are classified as in poor or mediocre condition.
  • 26% of the state’s bridges are either “structurally deficient” or “functionally obsolete.”
  • 55% of Maryland’s urban highways are severely congested during peak travel times — eighth highest rate in the nation. 

Most alarmingly, the report finds that the poor condition of Maryland roads is costing Maryland drivers big-time:  To the tune of about $7 billion a year in unecessary injuries from traffic accidents, lost time due to congestion-related delays, wasted fuel, and additional vehicle operating costs. In the Washington area, that comes out to about $2,296 per motorist, per year, that is being lost due to a failure to invest in our most basic transportation infrastructure. (FYI – the cost to each of us from a 10-cent-per-gallon increase in the state gas tax is only about $40 to $50 per year, depending on how much you drive!)

Former Montgomery County Executive Douglas Duncan, who chairs the Suburban Maryland Transportation Alliance, said it best:  “After decades of under-investment, we are out of time, out of money, and out of excuses.  The time to fix this is now, and that means finding new revenues and making sure they are spent on our failing transportation system. ”  Amen. 

The TRIP report lists some of the key projects that would significantly improve traffic conditions, but are not currently funded for construction:  New transit lines like the Purple Line and Corridor Cities Transitway, improvements to the I-95/I-495 interchange, widening sections of I-70 and I-270 to add new lanes, and a host of other road, intersection, bridge and transit projects throughout the region.

Bottom line:  None of these projects can be funded today without a significant increase in transportation funding.  Read the full report: TRIP Report.