Maryland on the Verge of a Fix for Transportation Funding Woes

Maryland is one of a growing number of U.S. states that's found itself in a tough spot when it comes to transportation funding.

The state blew through its transportation funds when it built a big highway project called the Intercounty Connector. Now, the state has so little money left that unless something changes, it won't be able to build long-sought transit projects.

Stephen Lee Davis at Transportation for America says transit advocates, state lawmakers, and Governor Martin O'Malley have coalesced around a plan to fund transit expansions.

First, the damage from the ICC:

Now, the solution:

The plan would:

• Index the gas tax to inflation starting immediately (with a ceiling of 5 cents maximum increase in any given year.)
• Add a three percent sales tax at the gasoline pump, phasing that in over a period of three years starting this summer.
• There are other provisions that could change the sales tax rate on gasoline that have to do with internet sales tax. In short, if Congress allows states to tax internet sales, Maryland will devote that revenue to transportation. If not, they’ll raise the sales tax on gas to five percent.
• Raise $4.4 billion for transportation over six years (including the ability to borrow against increased future revenues.)

The Maryland House of Representatives has approved the plan. Now it is up to the State Senate to fix this problem, or punt.

Elsewhere on the Network today: Greater Greater Washington compares the residential density of the country's largest metros. Seattle Bike Blog reports that the city's efforts to encourage family cycling are paying off. And the Tri-State Transportation Campaign says that a provision of the new transportation bill, MAP-21, could open up a new stream of transit funding for Connecticut.