highway transportation funding. highway transportation funding federal and state revenue has been...

HIGHWAY TRANSPORTATION FUNDING

Highway Transportation Funding

• Federal and State Revenue has been flat since 2005, not including the one time stimulus funding in 2009/2010.

Highway Transportation Funding

• Federal and State Revenue has been flat since 2005, not including the one time stimulus funding in 2009/2010.

• Purchasing power has diminished due to inflation

HIGHWAY TRANSPORTATION FUNDING

1991

Gas Tax

Purchasing power

Gas Tax

Purchasing Power InflationFuel Ecomony

9.5¢6.5¢

2¢

2015

18 ¢

Highway Transportation Funding

• Federal and State Revenue has been flat since 2005, not including the one time stimulus funding in 2009/2010.

• Purchasing power has diminished

• Fuel economy – drivers pay less gas tax ; Counties receive less revenue for same miles of travel

FUTURE FUEL ECONOMY STANDARDS

FUEL ECONOMY PAST AND FUTURE CHANGES

1994 Honda Accord, #2 Top Seller

21/27 mpg city/hwy

2013 Honda Accord, #4 Top Seller27/36 mpg city/hwy

2025 Honda Accord, #? Top Seller

54.5 mpg city/hwy

WHAT WILL WE SPEND?If you drove 12,000 miles – ½ city, ½ hwy

You consumed 508 gallons of gas

If you drove 12,000 miles – ½ city, ½ hwy

You consumed 389 gallons of gas

You paid $185 in gasoline tax

You paid $142 in gasoline tax

If you drove 12,000 miles – ½ city, ½ hwy

You consumed 220 gallons of gasYou paid $80 in gasoline tax

1994

2013

2025

TRAVEL IN ALABAMA - MVM

• Prior to 1998, travel increased at a rate of 3.1% per year.

• From 1998 to 2007 travel increased by 1.2% per year followed by a decline in 2008.

• Since 2011, traffic has remained flat.

• From 1993 to 2013, the total increase in travel was 37.4%.

FUEL CONSUMPTION

• From 1993 to 2007 fuel use increased by 1.3% per year, followed by a decline in 2008.

• From 1993 to 2013, fuel use increased by 18.7%.

• Over the last 20 years, travel increased by 37.4%, however, fuel consumption increased by only 18.7%.

Highway Transportation Funding

• Federal and State Revenue has been flat since 2005, not including the one time stimulus funding in 2009/2010.

• Purchasing power has diminished

• Fuel economy – drivers pay less gas tax ; Counties receive less revenue for same miles of travel

• Federal program is not coming to the rescue

FACTS ABOUT THE ALABAMA’S FUEL TAX

Last state gasoline tax increase was in 1992. If the State 18¢ per gallon gasoline tax were adjusted for

inflation based on the Consumer Price Index (CPI), the tax would be increased by 12¢ to 30¢ per gallon.

NOTE: Current 18¢ per gallon is 10¢ less than national average. In 1992, the state gas tax was 16½% of the cost per

gallon. Today, 18¢ is 9% of the cost per gallon. 30¢ would be 15% of the cost per gallon (at $2.00/gal).

CURRENT STATE GAS AND DIESEL FUEL TAXES REVENUE

Revenue Generated by Current Tax Rate  18¢ Gas Tax 19¢ Diesel Tax Total

State of Alabama (ALDOT) $ 263,284,000 $ 128,110,000 $ 391,394,000

Counties $ 162,494,000 $ 1,930,000 $ 164,424,000

Municipalities $ 18,638,000 $ 378,000 $ 19,016,000

Agriculture & Industries $ 4,252,000 $ - $ 4,252,000

Conservation & ALEA (Marine) $ 3,710,000 $ - $ 3,710,000

Total $ 452,378,000 $ 130,418,000 $ 582,796,000

CURRENT STATE GAS AND DIESEL FUEL TAXES

Revenue Generated by 1¢ per gallon

  1¢ Gas Tax 1¢ Diesel TaxTotal 1¢ Gas &

Diesel Tax

State of Alabama (ALDOT) $ 14,627,000 $ 6,743,000 $ 21,370,000

Counties $ 9,027,000 $ 102,000 $ 9,129,000

Municipalities $ 1,035,000 $ 20,000 $ 1,055,000

Agriculture & Industries $ 236,000   $ 236,000

Conservation & ALEA (Marine) $ 206,000   $ 206,000

Total $ 25,131,000 $ 6,865,000 $ 31,996,000

GAS AND DIESEL FUEL TAXES INCREASE FOR INFLATION

Revenue generated by additional 12¢ gas and 13¢ diesel  12¢ Gas Tax 13¢ Diesel Tax Total

State of Alabama (ALDOT) $ 175,523,000 $ 87,654,000 $ 263,177,000

Counties $ 108,330,000 $ 1,321,000 $ 109,651,000

Municipalities $ 12,425,000 $ 259,000 $ 12,684,000

Agriculture & Industries $ 2,835,000 $ - $ 2,835,000

Conservation & ALEA (Marine) $ 2,473,000 $ - $ 2,473,000

Total $ 301,586,000 $ 89,234,000 $ 390,820,000

Based on current distribution