What’s In the Highway User Revenues Deal?

SB 726 is on the Senate floor today, with the Budget and Taxation Committee amendments to effect the leadership’s new agreement on Highway User Revenue funding back to locally maintained roads and bridges.

Here are the details:

  • It’s a four-year funding structure: funding increases in FY24, again in FY25, then again in FY26… stays there for FY27….and then slides back to the FY24 level
  • The phase-up basically follows the same conceptual approach as the House plan did – take the current funding amount for each of the three recipients, and increase it by a certain percentage each year of the phase-up…it’s more generous than the House plan, but it follows the same logic
  • Baltimore City’s funding share is 8.3% today, in SB 726 it goes to 12.2% for FY26-27
  • Municipal governments’ share is 2.0% today, in SB 726 it goes to 3.0% for FY26-27
  • County governments’ share is 3.2% today, in SB 726 it goes to 4.8% for FY26-27
  • A relatively small adjustment in the amount of additional Corporate Income Tax that is run through this account, so there’s a modest increase in the total revenue being distributed

The new distribution amounts are included in the floor amendments, that were debated and approved on the Senate floor today (April 6), and will receive a final Senate vote soon. The House is expected to concur with the changes, and pass on this new approach in the remaining days of the session.

A complete revised fiscal note will likely become available based upon these revised percentages. For each of the 23 counties, the share of funds for FY24 should increase by roughly 15-18% over the FY23 amounts.

See prior Conduit Street coverage: Hogan, Legislative Leaders Agree to Advance MACo’s Initiative to Boost Funding for Local Infrastructure

Michael Sanderson

Executive Director Maryland Association of Counties
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