The Future of Transportation Funding in Montana

Motor fuel taxes and GVW fees are the primary revenue source for Montana Department of Transportation (MDT) state transportation funding. Over time, however, the amount of user-fee funding for highways has dropped due to rising fuel efficiency, shifting federal-state cost share on infrastructure investments, and inflation. The increasing popularity of electric vehicles (EVs) and alternative fuels adds to worries about future transportation funding. In response to this concern, more than half of states have introduced an annual registration fee on EVs. States continue to explore various methods to best reflect the user pays principle. These include: increasing existing motor fuel tax rates; indexing motor fuel taxes to inflation; implementing mileage-based user fees; and studying fuel-neutral fees, based on energy consumption. Multiple research projects have explored a variety of funding methods and identified best practices from around the country. This research topic would explore the same ideas, but be specific to Montana in order to help MDT plan for future transportation revenue.

• Record URL:
  • https://www.mdt.mt.gov/research/projects/admin/transportation-funding.aspx

Language

• English

Project

• Status: Active
• Sponsor Organizations:

  Montana Department of Transportation

  2701 Prospect Avenue
  P.O. Box 201001
  Helena, MT  United States  59620-1001
• Managing Organizations:

  Montana Department of Transportation

  2701 Prospect Avenue
  P.O. Box 201001
  Helena, MT  United States  59620-1001
• Project Managers:

  Callejas, Vaneza

• Performing Organizations:

  High Street Consulting Group

  6937 Blenheim Court
  Pittsburgh, Pennsylvania  United States  15208
• Principal Investigators:

  Beattie, Alice

• Start Date: 20240826
• Expected Completion Date: 20260228
• Actual Completion Date: 0

Subject/Index Terms

• TRT Terms: Fees; Financing; Fuel taxes; Transportation planning; User charges
• Geographic Terms: Montana
• Subject Areas: Finance; Highways; Planning and Forecasting;

Filing Info

• Accession Number: 01888764
• Record Type: Research project
• Source Agency: Montana Department of Transportation
• Files: RIP, STATEDOT
• Created Date: Jul 26 2023 12:36PM