States Get Creative to Fund Transportation Projects

Source: Mary Branham, Council of State Governments, E-newsletter Issue #117, June 20, 2013
The big picture regarding transportation infrastructure funding typically centers around the rapidly declining revenues that are tied to the primary funding source for roads—the motor fuels tax. But the real picture is even bigger than that for state governments….

…Georgia used alternative financing models, such as public-private partnerships and design-build-finance, to fund needed projects. It also looked at expanding sponsorship opportunities and focused on negotiating contracts with pay based on performance…

…The Virginia legislature did pass a proposal for funding transportation in the 2013 session—a compromise between Gov. Bob McDonnell’s proposal to eliminate the motor fuels tax and a variety of Senate bills to increase them…That includes public private partnerships, toll roads, reform at the state Department of Transportation, and the use of bonds and debt to fund infrastructure projects. But the public is growing increasingly intolerant of tolling and the state was “pretty maxed out on the credit card,” Powell said. …

Related:
States Act to Bolster Transportation Funding
Source: Council of State Governments, Webinar, June 14, 2013