OVERVIEW OF TRANSPORTATION FINANCE OPTIONS SEPTEMBER 28, 2011

2 The Problem – Part One: Transportation Finance  The backlog of state highway, transit, port and airport projects needing construction funding exceeds a conservative estimate of $60B, at last MDOT count, and it continues to escalate  Just one priority project for each Maryland jurisdiction exceeds $12b  Goal: $800m to TTF

3 Recommendations A gas tax increase of 10 cents per gallon = $322 million/year Indexing the gas tax rate to the Construction Cost Index (CCI) growth or additional $62m OR Index to Consumer Price Index (CPI) or additional $66m

4 Recommendations cont’d. Increase Maryland’s vehicle registration fees by 50% = $165m Increase titling fees from 6% to 7% = $100m Levying 6% sales tax on retail fuel price = approx. $613m

5 Recommendations cont’d.  Add 10% to the State Property Tax and dedicate it to the TTF. $73m  Add 20%... $148m  Expand the Sales Tax on vehicle repairs, and other vehicle related services. $63m

6 Recommendations cont’d.  Increase and dedicate state’s real estate transfer tax to the TTF. In FY 12, transf. tax rev. estimated at = $119m

7 FRONT FOOTAGE CHARGE Maryland revenue for $1 footage charge to property owner for each foot of property that abuts State, county, & municipal road = $323m, excluding beltway mileage Rationale: Sprawling properties require more roadway thereby generating higher costs for maintenance, etc. Recommendations (cont’d)