Review of State Transportation Funding Initiatives

Abstract: Despite significant cutbacks to the funding allocated to state departments of transportation (DOTs), demand for accessible and reliable transportation has increased even as existing transportation infrastructure has continued to age. Falling gasoline tax revenues resulting from increasing fuel efficiency and technological advancements have prevented state DOTs, including the Kentucky Transportation Cabinet (KYTC), from funding and financing much-needed transportation projects. Meanwhile, the Federal Highway Trust Fund, which provides funding to states and is tied to the federal gas tax, routinely receives cash infusions from the Federal General Fund to remain solvent—the federal gas tax has not been increased since 1993. Needing to invest in urgent transportation projects while facing stagnant revenue streams has led many state DOTs and researchers to begin exploring alternative funding sources as well as strategies to modify current revenue sources (e.g., gasoline tax, registration and licensing fees) to improve their sustainability. Ensuring the public understands that adequate funding is required to meet our infrastructure needs is critical as well—especially when transitioning to alternative funding mechanisms. Copyright: © 2018 University of Kentucky, Kentucky Transportation Center