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