Transportation - Highway User Revenues - Distribution
The bill significantly impacts state laws related to transportation funding by redefining how highway user revenues are distributed among different entities. Beginning in fiscal year 2024, the bill allocates 15% of highway user revenues to Baltimore City, while also specifying lower percentages for counties and municipalities over subsequent years. This change is expected to provide Baltimore City with a more substantial share of the total highway user revenues while allowing local governments to participate in state-aided transportation projects.
Senate Bill 946, titled 'Transportation - Highway User Revenues - Distribution', modifies the distribution and allocation of highway user revenues within Maryland. This bill aims to alter the purposes for which county transportation bonds may be issued and determines how revenue from the Gasoline and Motor Vehicle Revenue Account is utilized. Specifically, the bill outlines new percentages for the allocation of funds to Baltimore City, counties, and municipalities over several fiscal years. It is designed to ensure that local governments have adequate resources to maintain and improve transportation infrastructure.
Notably, the adjustment in revenue sharing may spark contention regarding equitable distribution among local governments. Some municipalities may feel disadvantaged if their percentage of road improvement funding is reduced as a result of the new allocation formula. Stakeholders have raised concerns about how these changes may impact local infrastructure projects and whether all regions will receive necessary funding to address their specific transportation needs.