Monday, November 24, 2014

Transportation Funding

Ian Grant
11/24/2014
Transportation Funding

     An important aspect in society deals with the importance of investing in infrastructure. Although the Federal government has discussed the importance of infrastructure development, they have kept transportation funding at stagnant levels. In return, many states in 2013 decided to take matters into their own hands. Previous and current policies have/are being enacted to allow billions of dollars to be put forth towards transportation infrastructure. The importance of this issue will be heightened in 2014 as the MAP-21 reaches its expiration date.

     Though the details vary, Maryland, Massachusetts, Pennsylvania, Vermont, Virginia and Wyoming all enacted policies in 2013 that will mean billions of dollars of new funding for transportation infrastructure. More action can be expected this year, with Alaska, Iowa, New Mexico, Rhode Island and Wisconsin all examining the issue. Also, Texas will enter the polls in November to decide whether or not it should pump money from the state's rainy day funds into transportation projects. In Missouri, efforts to petition to hold a vote on a one-cent sales tax increase for infrastructure projects.

     This fall, MAP-21 - the federal legislation that decides how much the country will spend on transportation and where the money will come from - is set to expire. This means that many legislations that haven't been changed for years may be facing changes come the end of 2014. For example, the expiration happens at a time when the federal gas tax has remained the same for twenty years. Federal budget forecasters continue to warn that, the gas tax accounts that reimburse states and localities for transportation projects could soon run dry if actions aren't taken soon. The expiration of MAP-21 can pose exponential risks on policies if changes are implemented which could damage funding for those programs. In regards to infrastructure, funding for transportation could have a negative effect on states in provisions aren't made to continue funding for that program. On the other hand, the expiration of MAP-21 could allow for increases in funding for infrastructure depending on whether or not the expiration will allow for programs to increase funding limits.

     Buzz about the future of federal transportation decisions could help the issue gain traction at the state and local level. If it becomes clear Congress isn't going to do anything, it may light a fire under some of these states sparking intentions to place funding provisions in the states hands. It could encourage states to battle the Federal government upon the means of gaining similar or increased funding for for their state. 







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