House Budget Plan: Highway User Revenues “Phased Back In” By 2015

Local Highway User Revenues (HUR) have been a centerpiece of state budget balancing, both in the current year and in the proposed budget plan for FY 2011 and beyond. The Senate is debating its plan on the floor tonight, including amendments to make the HUR cuts permanent.

In the House Appropriations Committee today, the Education and transportation Subcommittee approved its version of future year HUR funding. Under the House plan (funding details here), the local share of the Gasoline and Motor Vehicle Revenue Account will be as follows:

FY 2011: 8.5% of total
FY 2012: 8.1%
FY 2013: 15%
FY 2014: 21%
FY 2015: 28.5%

For reference:
Prior Law (until changes were made in 2009): 30%
2009 Session changes (long term): 28.5%

So, the House plan is to partially extend the Governor’s two-year cut for two additional “phase back in” years until re-reaching the full local share of 28.5% by FY 2015. Over the six year period including FY 2010, the Senate’s plan would divert just over $2 billion in the local share of transportation revenues to the State general fund. The House plan would reduce this diversion to roughly $1.4 billion.

Michael Sanderson

Executive Director Maryland Association of Counties

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