The Maryland Department of Transportation (MDOT) has unveiled its Draft Consolidated Transportation Program (CTP) for Fiscal 2025-2030, highlighting meaningful shifts in transportation funding that will directly impact county infrastructure projects.
Amid sluggish economic growth, higher costs for materials and labor, and the downward revision in revenue forecasts for several critical funding sources, including the gas tax, titling tax, transit fares, and vehicle registration, MDOT faces significant budgetary challenges. This resulted in a $1.3 billion reduction in its six-year capital program compared to the previous year’s plan.
The $18.9 billion program prioritizes safety and state of good repair but faces considerable financial constraints, likely leading to project delays and funding cuts, affecting counties statewide.
What Counties Need to Know
Highway User Revenue (HUR) Funding Preserved
Despite the tight fiscal environment, the Draft CTP maintains funding levels for HUR.
Well-maintained roads, bridges, and public transit are vital to public safety, economic development, and residents’ overall quality of life. Local governments are responsible for roughly five out of six road miles across the state, and adequate funding is crucial to ensure this infrastructure is safe, efficient, and capable of supporting economic growth.
In Maryland, local governments have no authority to levy their own transportation revenues – counties and municipalities depend entirely on a share of State-levied revenues to support safety and maintenance work on local roads and bridges across the state.
For decades, the State supported a balanced approach to maintaining its transportation infrastructure. The bulk of transportation revenues — mainly motor fuel and vehicle titling taxes — have been split between the State (for its consolidated Transportation Trust Fund, serving multiple modes) and local governments.
However, in 2009, recession-driven cutbacks slashed the share allocated to local governments. This reduction has constrained local budgets, hindering counties’ ability to address critical transportation needs.
Since then, the State has fully or mostly restored recession-driven cutbacks in many service areas. However, HURs have not followed suit and remain drastically below historic levels, even after the State has enacted a substantial transportation revenue increase.
As previously reported on Conduit Street, in the 2024 legislative session, the governor’s Budget Reconciliation and Financing Act proposed to slash funds for local roads and bridges across the state, eliminating planned increases in fiscal 2026 and fiscal 2027.
MACo successfully advocated for the General Assembly to reject deep funding cuts for local roads and bridges, avoiding a reduction of over a quarter billion dollars across those two coming years and setting the for a more considered plan for global transportation funding in the years ahead.
Even so, the fiscal 2025 funding for HUR falls significantly short of Maryland’s appropriate and historic funding levels, even without adjusting for inflation. This gap becomes even more pronounced when accounting for rising road maintenance and materials costs.
MACo and county leaders will continue urging Maryland policymakers to advance a sustainable plan to address critical infrastructure needs across the state. Proper restoration of the HUR formula should be a priority in creating sensible and reliable support for all locally maintained roadways.
Maintains Funding for Locally Operated Transit Systems (LOTS)
Despite the broader fiscal challenges facing MDOT, LOTS funding remains intact, ensuring continued support for the procurement, maintenance, and improvement of local transit vehicles and facilities.
A county’s LOTS services vary according to its size and population density. Some jurisdictions have extensive fixed-route service, while others offer demand-response service that provides door-to-door transportation.
Higher Local Match to Unlock Federal Funds
Due to budget pressures and reduced federal aid, MDOT anticipates requiring counties to contribute more toward the federal match for transportation projects. Initially targeting an 80 percent federal and 20 percent local match, the State now expects a 75-25 split.
This shift will likely result in delays or pauses for priority projects that aren’t already underway as counties struggle to meet the increased fiscal pressures while keeping critical infrastructure projects on track.
Project Deferrals
The State’s budget constraints have led to deferring specified local priority projects, particularly in pedestrian safety, sidewalk improvements, and road resurfacing. Counties with planned infrastructure projects in these categories should anticipate possible delays or scope reductions.
Impact on Long-Term Planning
With the State’s transportation budget stretched thin, future CTPs may face even more significant constraints. Counties should prepare for continued fiscal challenges, focusing on projects that align closely with State goals to secure funding.
Critical Investments and Strategic Adjustments
Despite the financial challenges, significant projects, like the rebuilding of the Francis Scott Key Bridge, remain top priorities, along with ongoing investments in transit enhancements like the Purple Line and Baltimore Red Line. However, the State’s financial difficulties mean delaying or scaling back other initiatives and local priority projects.
Looking Ahead
The draft CTP presents counties with both opportunities and challenges. While core funding streams like HUR remain intact, the broader fiscal environment signals the need for careful planning and robust advocacy.
MDOT officials will soon begin their statewide tour to meet with county and city leaders. The Department’s final budget will be subject to approval from the Maryland General Assembly in the 2025 legislative session.
For more information, read the Draft CTP for Fiscal 2025-2030 and stay tuned to Conduit Steet for updates.