MACo Supports “Lock Box” for Transportation Funding and Restoration of Local Share

March 11, 2011

MACo offered support for HB 591 heard in the House Appropriations Committee on March 10.  This bill would constitutionally prohibit the transfer of revenue from the Transportation Trust Fund (TTF) to the State General Fund, requiring revenues to be used for their intended purpose, transportation.  HB 591 would also protect the local share of Highway User Revenues (HUR) by requiring that funds in the Gasoline and Motor Vehicle Revenue Account be distributed based on the formula in effect on October 1, 2008 whereby local governments received 30% of the funds and the Maryland Department of Transportation (MDOT) received 70%.

Since 2003, the State has transferred $947.5 million from local (HUR) to the State’s General Fund, and this year’s budget plan calls for another $350 million to be similarly shifted.  In addition, during the 2010 General Assembly, the funding distribution was changed to reduce local government’s share from 30% to just over 9% and provide almost 20% of these fuel and vehicle taxes to the State’s General Fund beginning in FY 2013 and beyond. HB 591 will restore local government’s share to its traditional level of 30%, and provide assurances to taxpayers and local governments that the State’s commitment to roadways is secure.

MACo HB 591 Testimony


MACo Supports Bill to Constitutionally Prohibit Transfers to the General Fund

March 11, 2011

MACo offered support for HB 926 in the House Appropriations Committee with amendments offered by the sponsor to protect the local share of Highway User Revenues (HUR).   As introduced, the bill would constitutionally require funds that are dedicated for specific purposes to be used for that purpose and prohibit the transfer of these funds to the General Fund. This has become common practice to address budget shortfalls.

With respect to HUR, the bill would establish a mechanism to retain funds in the Transportation Trust Fund, but would not guarantee that local governments would maintain their share of HUR.  With the sponsors amendments, the bill would provide assurances to taxpayers that revenues are being used for their dedicated purpose, restore local government’s share of HUR to its traditional level of 30%, and express the State’s commitment to funding local roadways.

MACo Testimony on HB 926


MACo Supports Street Lighting Legislation

March 10, 2011

MACo offered support for HB 905 in the House Economic Matters Committee, which would allow a local government to purchase street lighting equipment from an electric company either through an agreement with an electric company or through a condemnation proceeding.  The bill would also require an electric company to develop a tariff for street lighting when the equipment is owned by a local government and attached to the utility pole owned by a public service company.

HB 905 seeks a fair and just process for local governments to purchase street lighting equipment.  Some local governments have attempted to negotiate with electric companies for the purchase of such equipment, but none have been able to reach an agreement on the terms of sale or the appropriate price.  MACo believes this bill could serve to stop the stalemates that have occurred thus far when local governments have expressed interest in purchasing street lighting equipment.


Local Roads Remain Focus of Transportation Discussion

February 28, 2011

This weekend, the Baltimore Sun’s “Getting There” blog (focusing on traffic and transportation issues) featured an item discussing local transportation funding woes, and the effects on road conditions. From the article:

Under the state Constitution, the general fund must be balanced each year, but there is no requirement that the state maintain any minimum level of transportation spending. Thus, when the recession cut deeply into state revenues, local transportation funds proved to be an irresistible source of money to fill the general fund gap.

The state has siphoned money from that particular well to deal with previous budget shortfalls. Under Gov. Robert L. Ehrlich Jr., about $250 million was taken in 2005-2006.

But those diversions look picayune compared with the ones that have taken place under Gov. Martin O’Malley since the nation plunged into a recession in 2008-2009. If the current budget goes through as planned, the state will have diverted about $1 billion in road funds from localities to the general fund over three budget years.

That’s why Baltimore County saw a reduction of its state aid for road repair from $43.2 million in 2007 to an expected $1.3 million in 2012. Anne Arundel County, once the recipient of more than $30 million, has staggered along with less that $1 million in recent years. The numbers in Harford and Carroll look a lot like Howard’s.

Real the full article here.


MACo Supports Bill to Exempt Local Transportation Systems From Motor Carrier Permit

February 23, 2011

MACo submitted testimony to the Senate Finance Committee in support of SB402 with amendments.  The bill would exempt a public transportation system established under the public laws of a county government or municipal corporation from the motor carrier permit required for a passenger motor vehicle used in the transportation of person for hire. Permits are issued through the Public Service Commission (PSC).

Under current law, the public transportation systems for Allegany, Frederick and Washington Counties are already exempt.  SB402 would extend the exemption to other locally run transportation services.  Amendments offered at the hearing by the Transportation Association of Maryland would expand this exemption to also apply  to contractual arrangements local governments may enter into with non-profit entities to manage and operate transportation systems on their behalf.  MACo supports these amendments.


MACo Offers Amendments to Address Licensing Provision in Towing Legislation

February 22, 2011

MACo Associate Director Andrea Mansfield testified before the House Environmental Matters Committee in support of HB356 with amendments. HB 356 would implement the recommendations of the Task Force to Study Motor Vehicle Towing Practices MACo appreciated the opportunity to be represented on this Task Force and believes the statewide framework outlined in HB 356 will serve as an appropriate “floor” to protect citizens from unscrupulous practices.

In its testimony, MACo expressed concerned with language on page 4 of the bill that states that a motor vehicle towing and storage lienor may not sell the motor vehicle to which the lien is attached unless the lienor is licensed by the local jurisdiction.  As the Task Force report points out, not all jurisdictions license towing companies, yet this bill provision implies that a jurisdiction would need to establish a licensing process.  Instead of having each jurisdiction establish a tower license to satisfy this section, MACo suggested that this language be amended to allow the use of a business license as the means of oversight and enforcement in those jurisdictions that do not license towers – retaining the bill’s intended incentives, without a local mandate.


MACo Supports Bill to Authorize Removal of Signs From Highway Rights-of-Way

February 17, 2011

MACo Associate Director Andrea Mansfield testified in support of HB 289 on Tuesday, February 15.  HB 289 would authorize removal of improperly placed signs on highway rights-of-way by state or local authorities, and authorize a civil action to recover costs of their removal or disposal.  Additionally, the legislation would provide sensible authority to the overseers of highway right-of-ways, to provide clear allowance for these necessary cleanup actions.  MACo urged the a favorable report from the  House Environmental Matters Committee on HB 289 as it will help clean up the appearance of public roadways by clarifying accountability for the person or company improperly placing signs, and for the governmental entity that enforces the provisions.

MACo HB289 Testimony


Bill Introduced to Protect Local Share of Gas Taxes

February 14, 2011

This year, numerous sponsors have introduced variants on the same theme — (semi-quoting here) put the “trust” back into the Transportation Trust Fund. Following a period where the State budget resolution has obliged deep cuts to many special funds including the Transportation Trust Fund, many advocates for transportation have urged some protection — likely a constitutional amendment — to ensure that such funding shifts be prohibited. (A statutory protection would not be strong enough to withstand an annual Budget Reconciliation bill, which is explicitly designed to override various statutes to effect a balanced budget plan)

However, even as multiple sponsors introduce variations on the same theme, only one bill has so far been advanced that would actually recognize that the local share of transportation revenues — gasoline taxes and vehicle registrations — have been a massive victim of state cuts. Beginning in FY 2010, the share of these revenues sent to county and municipal governments via formula known as “Highway User Revenues” has been cut by some $350 million per year. Every county’s share of Highway User Revenue is now approximately 3% of what it was just a few years ago — and assuming this plan continues into FY 2012 (built into the Governor’s budget already, as this cut was made permanent in last year’s budget reconciliation bill) the total share of motorist-derived revenues going to local roads and bridges will have been shorted by more than $1 billion.

HB 591, sponsored by Delegates Charles Barkley and Susan Krebs, would remedy this funding transfer. The bill is a constitutional amendment, which seeks to protect transportation revenues for their intended uses, and restore their direction to the shares in place prior to the massive budget cutting of FY 2010 and since.

From the relevant section of the bill, here’s the operative section:

(F) FUNDS IN THE GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT IN THE TRANSPORTATION TRUST FUND SHALL BE DISTRIBUTED AS PROVIDED IN §§ 8–402, 8–403, 8–404, AND 8–405 OF THE TRANSPORTATION ARTICLE AS THEY WERE IN EFFECT ON OCTOBER 1, 2008.

Read the full text of HB 591 here


Report Card Rates Maryland’s Infrastructure

February 9, 2011

As reported by MarylandReporter.com, the Maryland Section of the American Society of Civil Engineers recently released its 2011 Report Card for Maryland’s Infrastructure.

Maryland’s aging and ill-maintained transit, roads, dams, bridges and storm water systems earned a barely passing grade of C-, according to the 2011 Report Card for Maryland’s Infrastructure prepared by the Maryland Section of the American Society of Civil Engineers.

No aspect of Maryland’s infrastructure earned a very good grade on the report card. Worst was the storm water system, which received a D. Transit and roads – as well as the drinking water infrastructure in the Baltimore area – received marks of C-, while dams and the Baltimore area’s wastewater system received Cs. The state’s bridges received a B-, the highest grade given.

Frank Kaul, president of the Maryland Section of ASCE, called the low grades unacceptable. Fifteen ASCE members spent more than eight months evaluating the different aspects of the state’s infrastructure, based on its capacity, the state’s needs, its level of resilience, and the availability of funding for it. If an aspect of infrastructure served its needs perfectly, was relatively new, and had dedicated funding available, Kaul said it would have received an A.


Study Calls for Increased Funds for Maryland Roads and Bridges

February 4, 2011

The Capital covered the release of a report from The Road Information Program, or TRIP, a national transportation research group in Washington, D.C. From the Capital‘s coverage:

“Maryland’s roads and bridges are deteriorating at a rate faster than the state can afford to repair them,” said Carolyn Bonifas, the study’s author and TRIP’s associate director of research and communications. These statistics “definitely are not a sign of failure … The agencies are doing a tremendous job (but) they are not able to keep up with these roads because they are so strapped for financial support.”

The full report is available in pdf form from the TRIP website.


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