10/22/08-Transportation officials in Tennessee are looking for solutions to help pay for the state’s backlog of road work.
During the next decade, officials with the Tennessee Department of Transportation estimate that the agency will need an extra $8 billion to meet its needs, WSMV-TV in Nashville reported.
Many options for how to eat into the transportation funding gap are expected to receive consideration in the next few months. A new legislative committee has begun their examination of ways to increase funding for road work and repairs, including fuel tax hikes and toll roads.
The Transportation Funding Special Study Committee was created by state lawmakers to address concerns about paying for road and bridge work. Reasons cited for the funding crunch include declining fuel tax revenues, uncertainty about federal money and escalating costs for construction materials.
The group made up of legislators, local government and transportation industry officials will work for the next three months. They will submit a report and recommendations on how to address the widening gap between transportation revenue and expenses to the General Assembly in February.
Among the options to increase funding that are expected to be examined by the committee include a boost to the state’s fuel tax rate. Indexing the tax to the retail price, instead of the per-gallon rate, also is expected to be considered. Another option would be to increase annual vehicle registration fees.
Consideration also is expected to be given to building toll roads, partnering with private groups and issuing bonds.