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Vermont Legislature
Follow VPR's statehouse coverage, featuring Pete Hirschfeld and Bob Kinzel in our Statehouse Bureau in Montpelier.

Local, National Pressures Threaten Vermont Transportation Fund

Angela Evancie
/
VPR/file
A shortfall of state revenue and changes to the Federal Highway Trust Fund could delay dozens of road repairs and new highway projects in Vermont this summer.

Vermont's Transportation Fund, which pays for both road repairs and new highway projects, faces two major threats.

The first is a projected $6.6 million shortfall of state revenue. The second is possible changes to the Federal Highway Trust Fund that could delay dozens of projects in the state this summer.

A significant drop in gas prices over the past six months has been good for consumers, but not for Vermont's Transportation Fund. That's because part of the overall state gasoline tax is tied to the price at the pump.

How Vermont taxes gasoline is pretty complicated. There's a straight per-gallon tax, there's an assessment for underground storage tanks and there are assessments that are used to fund long-term infrastructure projects like bridges.

Here's the problem: One of the assessments is tied to the price of gasoline, and last year it was projected that gas would cost around $3.80 a gallon. However, the current price in many parts of the state is closer to $2.50.

This has created a $6.6 million shortfall in next year's budget and it's expected to grow to at least $8 million by the end of June.

House Transportation chairman Pat Brennan is very concerned about this situation.

"It's very serious as far as the cuts we may have to make,” Brennan says. “We have a shortfall of $6.6 million currently, and some of the cuts we're facing would be very painful to travelers throughout Vermont."

"It's very serious as far as the cuts we may have to make. We have a shortfall of $6.6 million currently, and some of the cuts we're facing would be very painful to travelers throughout Vermont." - House Transportation chairman Pat Brennan

Brennan says he's willing to consider a plan that doesn't link the assessment to the price of gas – and the net effect would be a 2-cent hike per gallon.

"I would hate to see us lose ground on transportation. I would hate to see cuts to paving, I would hate to see cuts to projects, bridges, the culvert work we've done over the years,” Brennan says. “We've come a long way and I think that to lose ground at this point would really be a setback to the system."

Brennan's second problem involves a failure by Congress to reauthorize its long-term transportation bill. Federal funding for many state and local projects will expire at the end of May. Brennan says it's very difficult to predict how Congress will resolve this issue, and he says many Vermont projects could be at risk.

"It could be devastating,” he says. “I'm hoping not, but there's so much uncertainty out there right now that I think we have to act now as a state." 

The House Transportation committee is expected to make a decision on its revenue plan by the end of the week.

Bob Kinzel has been covering the Vermont Statehouse since 1981 — longer than any continuously serving member of the Legislature. With his wealth of institutional knowledge, he answers your questions on our series, "Ask Bob."
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