The state of Utah is projecting a transportation project funding shortfall of approximately $7.3 billion for high-priority projects through 2040, despite the imminent increase in the state’s gasoline tax as a result of the passage of Proposition 1.
The state’s Unified Transportation Plan, which was presented to legislators this past Wednesday, stipulated that, prior to the consideration of the tax hike, officials had projected the shortfall for state and local projects at about $11 billion through 2040.
According to a report issued by The Salt Lake Tribune, Proposition 1 was intended to provide 40% of new revenues to the Utah Transit Authority in Wasatch Front counties, and 60% to cities and counties for local roads.
Proposition 1 was defeated in the state’s two largest counties—Salt Lake and Utah counties.
The Unified Transportation Plan assessed $67.5 billion worth of high-priority projects statewide through 2040, but estimates that current taxes will provide only $60.2 billion, a figure that includes revenue from a 4.9-cent-per-gallon increase in gasoline taxes that the Legislature approved this year, which will take effect Jan. 1. That tax will rise automatically in the future, tied to increases in the price of gasoline. Proposition 1 will raise sales taxes by 1 cent for every $4 in purchases in the 10 counties that passed it. Another seven counties defeated it. Twelve did not put it on the ballot.
