Maryland's transportation challenge - Good news and bad news

House of Delegates acts to fund Transportation projects – but tax credits are needed to ease the effect on low-income working families.

MBTPI from Center on Budget estimates

 THE GOOD NEWS: 

The Maryland House of Delegates, by a 78-56 vote, has approved a sensible financing plan for Maryland’s transportation network.

The plan will provide funding to maintain roads, to make our bridges and highways safe, and to expand mass transit, bicycle and pedestrian transportation options for Marylanders.

The funding – principally from a sales tax on gasoline, will phase in over three years (until now, the state gas tax has not increased in 20 years). Then, it will automatically adjust with inflation, so that our transportation system won’t fall behind again.

The bill also includes modest increases in transit fares – everyone has “skin in the game.”

THE BAD NEWS:

It makes sense to use gas tax and transit fare increases to support transportation needs. The problem is these sources place a disproportionate burden on low-income working families.

There is a solution within the legislature’s reach. They can also pass House Bill 845 or SB 703 to expand the state Earned Income Tax Credit. The credit particularly helps working people with kids who earn less than $50,000. By increasing it, we can offset their added cost of gas and transit costs that come along with these much-needed transportation improvements.