State leaders propose transportation package

Governor O'Malley, Senate President Mike Miller, and House Speaker Michael Busch released their transportation funding package yesterday (HB 1515/SB 1054). Maryland's transportation system has struggled for years with inadequate funding and the gas tax (which isn't indexed to inflation) hasn't been raised since 1992. Critical transportation needs are coming to a head in many states (see Virginia's recent transformation of its funding structure), and our state lawmakers finally have a plan to do something about it.

The proposal would raise $3.4 billion over five years. Here are the details, according to a graphic put out by the Governor:

Click to enlarge

This plan is a strong and sensible move toward more sustainable transportation funding. A healthier transportation system will help Maryland businesses and residents of all incomes live a better life.

However, we would advocate that the General Assembly add one more piece to the leadership's bill. Any expansion of the gas tax, sales tax, or other taxes or fees that disproportionately burden low-income families should also include an increase in the earned income tax credit. In fact, there are already bills before the legislature that would do just that. MBTPI strongly recommends that HB 845/SB 703 be made part of any transportation finance deal based on the plan put forward today.