State DOTs Face $50 Billion Shortfall in Infrastructure Funding
Leaders of state Departments of Transportation across the country are saying the coronavirus pandemic has left them facing an estimated $50 billion shortfall in infrastructure project funding. According to the American Road and Transportation Builders Association, more than $8.5 billion of work has been cancelled or delayed. As gasoline demand diminishes, so too does money for the Highway Trust Fund that provides states much of their transportation revenue. Although gasoline demand has improved somewhat, it remains well off from last summer and is likely to remain down for the foreseeable future.
- The hardest hit states include North Carolina, Missouri, and Oklahoma.
- The House infrastructure bill that passed in early July would have given states additional cushion by freeing them from their obligation to spend one dollar on transportation to get four more dollars from the federal government, while also providing a direct cash infusion as well. It is possible that additional transportation money will be included in the next coronavirus relief package.
Effective July 1 adjustments to several states’ fuel tax rates took effect.
- Illinois – Increased to 38.7c ts/gal from 38 cts. The diesel tax increased to 46.2 cts/gal. There are also multiple localities that are adjusting the sales tax structure in Illinois.
- Indiana – Gasoline tax increased to 31 cts/gal.
- Iowa – Gasoline tax increased to 30 cts/gal.
- Nebraska – Gasoline tax increased to 33.2 cts/gal.
- South Carolina – Increase to 24 cts/gal.
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