Highway User Revenue Cut Permanently in Senate Plan

In today’s decisions by the Senate Budget and Taxation Committee, the local share of Highway User Revenues was cut permanently.

The Governor’s BRFA bill proposed that the deep cuts (over 95% reduction for nearly all counties) would essentially be continued for FY 2011 and 2012. The Committee, in assembling a multi-year plan for the State Budget, opted to extend the cuts permanently. Summary documents detail that the proposed local share of funding would be reduced to 9.5% of the total Gasoline and Motor Vehicle Revenue Account. Until recent budget-cutting, that local share had been 30% for many years, recognizing that local governments have responsibility to maintain more than 80% of the State’s road miles.

The budget adjustments also resolve a somewhat technical issue with “overfunding” of local highway user revenues in FY 2010, by adjusting the amount cut for FY 2011.

Under the B&T plan, local governments will be funded at approximately $169 million in FY 2013, with Baltimore City receiving $156.7 million, other counties receiving a total of $10.7 million, and municipal governments receiving $1.8 million. Under laws in place prior to this severe budget-cutting (with a 30% local share), the local funds would have totaled approximately $534 million.

Michael Sanderson

Executive Director Maryland Association of Counties

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