Baltimore, MD - July 23, 2024 - Faced with a $3.3 billion transportation budget shortfall, the Maryland Department of Transportation had to make tough funding choices. State leaders scrambled to balance the deficit by pausing certain improvement projects and raising registration fees. They’re also considering a new way of collecting revenue from drivers.
Earlier this year, MDOT, in partnership with The Eastern Transportation Coalition, launched a pilot program testing the mileage-based user fee (MBUF).
“So, it's pretty simple in concept. If you use the roads, you pay for the roads. You use the roads more, you pay for the roads more, so it's really creating that link between use and payment and getting away from the fuel tax as being the way we fund transportation,” said Trish Hendren, executive director for The Eastern Transportation Coalition (TETC).
As cars become more fuel efficient and drivers switch to electric vehicles, less gallons of fuel are being sold. In addition, the fuel tax rate in Maryland declined from 47 cents per gallon to 46.1 cents per gallon, due to an inflation adjustment. MDOT expects this to further impact the amount of fuel tax revenue generated adding that the fuel tax revenue is the “largest source of funding for transportation in Maryland, comprising nearly one-third of annual revenues to the Transportation Trust Fund. The Transportation Trust Fund funds the operation and maintenance of transit, road and bridge, port, and airport facilities across Maryland,” a MDOT spokesperson wrote in an email to WMAR-2 News Mallory Sofastaii.... Read More: WMAR2NEWS