PORTLAND, Ore. (AP) — The pothole near Timothy Taylor's residence was so deep that he could hear the thud of vehicles striking it even from within his home.
The person living in Portland, Oregon, could understand the struggles of those drivers; he was aware enough to steer clear of the potholes in his area, yet a different one ruined the suspension of his vehicle at a cost of $1,000.
"Hearing that terrible noise when your car hits the ground is absolutely dreadful," he commented.
Oregon’s transportation authorities warn that without additional funding, locals such as Taylor might experience a deterioration in road, highway, and bridge conditions beginning this year. However, income from gasoline taxes collected at fuel stations is expected to drop as more individuals switch to alternative modes of transport. electric and fuel-efficient cars , compelling authorities to seek out innovative methods to finance transport infrastructure.
States such as Oregon, which have ambitious climate targets, encounter a dilemma: While electric vehicles (EVs) can aid in decreasing emissions from the transportation sector—the biggest contributor of greenhouse gases in the country—they also result in reduced gasoline tax income for governmental budgets.
We currently face a situation where we aim to tackle fuel consumption and reduce dependence on fossil fuels and internal combustion engines," stated Carra Sahler, director of the Green Energy Institute at Lewis & Clark Law School. "However, we also require funding for maintaining the road infrastructure that electric vehicles will rely on.
The income from gas taxes is expected to decrease.
According to the National Association of State Budget Officers, motor fuel taxes represent the biggest contributor to transportation funding at the state level. latest document on government spending However, the funds they generate have decreased: The organization discovered that gas taxes contributed 41% of transportation revenue in fiscal year 2016, down from approximately 36% in fiscal year 2024.
In California, where zero-emission vehicles made up approximately 25% of vehicle purchases last year, legislative analysts predict Fuel tax revenues are expected to drop by $5 billion—or 64%—by 2035 under a scenario where the state achieves its climate objectives. California and Oregon are included in several states mandating that all new passenger cars must be zero-emission vehicles by 2035.
The decreasing revenue pattern has become evident in Pennsylvania, where gas tax revenues reportedly fell by an estimated $250 million last year compared to 2019, as stated by the state’s authorities. independent fiscal office .
Rising inflation has similarly increased the expense of transportation resources, intensifying financial worries.
What's happening in Oregon at the moment?
The Oregon Department of Transportation — pointing to factors like inflation, projected decreases in gas tax revenue, and specific spending constraints — estimates a funding gap exceeding $350 million for the upcoming budget period.
This might result in reduced winter snow removal services and less road resurfacing and painting, along with potential job losses for up to 1,000 transportation workers.
Republican legislators argue that the problem with gas tax revenue has been worsened by the department’s poor financial management. An audit Released in January revealed that the department had overestimated its income for the present budget period by more than $1 billion and did not adequately monitor specific funds.
"It truly comes down to ensuring that the current funds allocated to the department are utilized in an efficient and effective manner," stated State Senator Bruce Starr, who serves as the GOP co-vice chairman of the Joint Transportation Committee.
In what ways are governments increasing financing for transportation?
In an effort to recover lost income, 34 states have increased their gasoline tax rates since 2013, as reported by the National Conference of State Legislatures. The Golden State leads with a total charge exceeding 69 cents per gallon once additional levies are included, whereas Alaska maintains the lowest rate at just 9 cents per gallon, based on data provided by the U.S. Energy Information Administration. Notably, Oregon was the pioneering state to introduce such taxation back in 1919 and currently imposes a levy of 40 cents per gallon.
The federal gas tax of 18 cents per gallon, which has not been modified for inflation, hasn't seen an increase in more than thirty years.
In Oregon, where there is no sales tax and Tolling has faced strong resistance. , legislators are discussing subsequent actions.
Oregon is one of the states that has already increased the registration charges for electric vehicles.
Other states have implemented measures like adjusting their gas tax according to inflation or imposing taxes on EV charging stations.
To strengthen transportation funds, some individuals have rearranged their budgets. In Michigan, where Governor Gretchen Whitmer initially won her election with the slogan “Fix the Damn Roads,” A portion of revenue generated from marijuana taxes and individual income taxes currently contributes to funding transportation projects. In Connecticut, the proceeds from sales tax have begun to surpass those from gasoline taxes in terms of financial contributions to their specific transportation fund. A fiscal report for 2024 indicates.
Another idea that might offer a sustainable resolution involves what are commonly referred to as a road user charge With this setup, motorists pay an amount that depends on how far they drive.
In 2023, Hawaii set up a road usage charge program For electric vehicle (EV) drivers, this system will begin phasing in starting in July. By 2028, all EV drivers will be automatically included, with their odometers checked during yearly vehicle inspections.
In addition to these, three more states—Oregon, Utah, and Virginia—have implemented optional road usage fee initiatives. Motorists may choose to utilize GPS technology for monitoring and reporting the distance they travel.
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The title of the National Association of State BudgetOfficers has been updated to include the word "State."
Claire Rush, The Canadian Press