Transit and the transportation funding crisis.

Rall, Jaime

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Transportation revenues continue to fall short of infrastructure needs. State transportation budgets rely heavily on federal and state gas taxes, which have steadily declined in light of the growing use of alternative-fuel and fuel-efficient vehicles, making it difficult to meet ever-rising construction costs.

Traditionally, the federal government and local governing bodies have shared responsibility for building new transit projects, while states took the lead on roads. In recent years, however, states have played a greater role in providing affordable, accessible transit options--to the tune of around $13.6 billion in 2010, more than the federal government contributed, according to the most recent Survey of State Funding for Public Transportation.

Transit projects have been an important part of many ongoing transportation funding debates in state legislatures. The Missouri General Assembly, for example, is looking at imposing a 10-year sales tax for transportation projects (including transit). The Minnesota Legislature is considering a sales and use tax for transit projects in the Twin Cities area, while Maryland is proposing to pay for transit by raising fares and tying them to inflation. And the Virginia General Assembly enacted a high-profile transportation funding overhaul that is expected to increase funding for highways, transit and rail. An idea to raise more money for transit and rail by hiking vehicle registration fees, however, did not make it into the final bill.

Local governments, however, still provide the lion's share of funds for transit, and some state legislatures are considering giving them more flexibility in their transit funding options. Lawmakers in Maryland, Michigan and Washington, for example, are considering whether to allow regional or local entities to collect additional fees or taxes to benefit transit, while Colorado legislators debate whether localities should be allowed to spend their portion of gas tax revenues on transit projects.