Transportation Funding Challenge Facing Maryland:Prelude to the 2008 General

Assembly Debate

Sources and Uses 2007-2012

Bonds6%

Titling21%

Motor Fue l21%

Corporate6%

Registrations16%

Operating10%

Other2%

Federal Aid18%

Capital39%

Operating40%

Local Gov'ts17%

Debt Service4%

Sources Uses

Effect of Inflation

• Operating costs are forecast to increase by 4.5% per year, while revenues are forecast to increase by 2.5% per year. Over time this will reduce the funding available for capital projects.

Capital Program 2007-2012

$0.0$0.2$0.4$0.6$0.8$1.0$1.2$1.4$1.6$1.8$2.0

2007 2008 2009 2010 2011 2012

PlanningMaintenanceConstruction

Bil

lion

s

Examples of Unfunded Projects

• I-695 widening• I-95 north of White

Marsh• Red Line• Green Line• MARC capacity• Port dredging• Central MD bus

facility

• MD 3 in Crofton• MD 175 and 198 @

Ft. Meade• Waldorf Bypass• I-70 thru Frederick• Airport

improvements• Maglev• BRAC projects

Revenue Options

Measure……Yields Annually

Increase gas tax 5 cents/gallon

$168 million

Increase gas tax 5 cents/gallon and index to CPI

$203 million

Increase share of corporate tax to TTF from 24% to 48%

$115 million

Increase corporate tax 1%

$116 million

Measure……Yields Annually

Increase sales tax to 5 ¼ % in metro. counties

$146 million

Income tax surcharge of 1%

$80 million

State property tax increase from .112 per $100 to .117

$33 million

Increase vehicle registration $20

$100 million

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