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.