On January 28, Legislative Director Kevin Kinnally submitted a Letter of Information to the Ways and Means Committee on HB 167 – Vehicle Excise Tax – Rate Increase.
This bill provides a mechanism to raise revenue for the State’s Consolidated Transportation Trust Fund, but local governments face a dire crisis as transportation funding remains unpredictable, severely insufficient, and far below historical levels.
A sustainable solution to the local transportation funding crisis is long overdue. County leaders urge the General Assembly to advance a sustainable solution to address critical infrastructure needs across the state. Restoring the Highway User Revenue formula should be a priority in advancing such a plan, creating sensible and reliable support for all locally maintained roadways.
While the governor’s 2026 fiscal plan appears to resolve multi-billon dollar deficits in the Transportation Trust Fund, it assumes temporary increases to the local share of Highway User Revenue will expire after fiscal 2027. Without legislative action, this “funding cliff” could slash hundreds of millions of dollars from local roads and bridges, compounding years of cumulative cuts to local transportation funding.
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