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Saturday, August 27, 2016
$4M for DoT to Study Ways to Raise Highway Taxes
By News Release @ 10:05 PM :: 4977 Views :: Hawaii State Government, Taxes

HAWAI‘I AWARDED NEARLY $4 MILLION IN FEDERAL GRANTS TO STUDY ALTERNATIVE TRANSPORTATION FUNDING METHODS

State leads way in preparing state highway system for future without fossil fuels

News Release from Office of the Governor, Aug 26, 2016

HONOLULU – The Federal Highway Administration (FHWA) awarded $3.998 million in competitive grant funding to the Hawai‘i Department of Transportation (HDOT) as part of the Surface Transportation System Funding Alternatives (STSFA) program. The grant will allow the HDOT Highways Division to study and explore alternative methods of funding state and county transportation systems in the future.

“Trends toward more fuel-efficient, hybrid and electric cars have a significant impact on transportation funding in Hawaiʻi because of our current reliance on the gas tax as a transportation funding mechanism,” said Gov. David Ige. “While I encourage the move away from fossil fuels as part of our commitment to a clean energy future, the resulting lower consumption reduces the funds available for highways projects. Moving forward, we need to explore new ways to fund our state highway system. We are thankful for FHWA’s commitment to help Hawaiʻi confront this challenge.”

HDOT Highways Division plans to use the $3.998 million grant to study alternatives to the gas tax by working with county and state officials and stakeholders to design new systems to obtain highways funding. These systems will then be tested with Hawaiʻi residents and visitors. One example of an alternative funding mechanism is road maintenance fees based on the number of miles driven, similar to how electric or water utilities are metered.

“Our goal is to design a system for highways funding that is fair, transparent, and easy to use for the public,” said Ford Fuchigami, director, Hawai‘i Department of Transportation. “We will continue to work toward creating a sustainable funding source for the many projects we have, to address the care and maintenance of Hawaiʻi roads.”

Dwindling gas tax revenues is a national problem. Congress created the grant program so that states can study alternatives that will help the federal government restore solvency to the Federal Highway Trust Fund. For Federal Fiscal Year 2016, a total of $15 million in STSFA funds were granted to states on a competitive basis.

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Flashback: State Fails to Use $820M in Federal Highway Funds

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