Alabama, Pennsylvania make strides to protect roads and bridge funds

June 2, 2023

Keith Goble

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Legislation in two statehouses is intended to make sure fuel tax revenue is routed to roads.

Alabama road and bridge funding

On Tuesday, May 30, Alabama Gov. Kay Ivey signed into law a bill that is intended to make sure fuel tax revenue collected by local governments is used to benefit roads and bridges.

There are hundreds of localities around the state that collect their own fuel taxes.

Alabama statute limits state fuel tax revenues to be used solely for infrastructure and similar uses. The rule does not apply to local governments collecting their own fuel taxes.

The legislature sent a bill to the governor to revise the rule for local governments.

The new law requires any fuel tax, license tax, or other related taxes collected by a county or municipality to be used solely for road and bridge construction and maintenance. Other uses could include traffic regulation and enforcement.

A grandfather clause is provided for localities that already use some of their road money for other purposes.

Previously HB254, the new law prohibits additional towns or counties from implementing policy that takes money away from roads and bridges.

Advocates said the change is needed to make sure fuel tax revenue is not being applied for purposes other than roads and bridges. They add it is the intent of the legislation to take steps to protect new revenue and avoid any additional fuel tax rate increases to compensate for redirected funds at the local level.

Critics said that local governments have a better understanding of how local revenues need to be applied for projects. They add that a one-size-fits-all approach dictated by the state is unnecessary.

The new rule takes effect Sept. 1.

Pennsylvania

In Pennsylvania, the House Transportation Committee voted unanimously to advance a bill that would cap how much money is sent from roads and bridges to the state police.

For years, money from the state’s motor license fund was transferred to the state police. The amount reached $800 million by the 2016 budget year, according to state figures.

As a result, money that was intended for essential road and bridge work was instead being used to cover trooper expenses.

In 2016, the state applied the brakes on the transfers. Instead, a process was implemented to gradually reduce the amount of money routed from roads and bridges to the state police.

Specifically, funding from the motor license fund to troopers was capped at $800 million with a schedule to decrease that amount to $500 million over the next decade.

Overall funding to troopers was not affected. The state’s general fund has been tapped to cover the difference.

Legislative cap

Sponsored by House Transportation Committee Chairman Ed Neilson, D-Philadelphia, the bill would limit the amount of fuel tax revenue and other vehicle fees that are set aside for troopers.

A bill memo states that since 2013 troopers have received more than $6.3 billion that should have been spent on roads and bridges.

HB1162 would further reduce the $500 million cap set in 2016. The state police would receive $400 million for the next fiscal year with that amount decreasing by $100 million annually until fiscal year 2027-28.

The change is touted to make an additional $1.5 billion available for road and bridge projects over the next five years.

“Drivers in Pennsylvania are keenly aware of the state tax they pay on the fuel they purchase,” Neilson said in prepared remarks. “They’ve historically understood that this money goes for keeping roads and bridges in drivable condition. But in recent years a substantial part of that money has been going to the state police, meaning fewer roads and bridge got the attention they need.

“It’s time for the legislature to fix this and rededicate all of the (fuel) tax money to our state’s transportation needs.”

A special fund would be established to be used by the state police for public safety and law enforcement.

Gov. Josh Shapiro supports the pursuit. He said troopers should have their own protected funding source paid out of other revenue streams.

The Pennsylvania Motor Truck Association also supports the legislation.

“Lowering the transfers will allow for additional annual investment in our highway and bridge network without tolling or increases in fuel taxes or fees,” Rebecca Oyler, president and CEO of the Pennsylvania Motor Truck Association, testified during a recent House Transportation Committee hearing.

The bill awaits consideration on the House floor. LL

More Land Line coverage of state news is available.