Maryland Transportation Plan Adds $279.4M of New Projects

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DALLAS -- Maryland's latest six-year transportation plan includes $279.4 million of new projects as part of $4.4 billion of additional highway and transit funding provided over six years by a 2013 state law that raised the gasoline tax.

The draft plan proposes seven new construction projects totaling $266.7 million and six new development and evaluation programs totaling $12.7 million.

The Maryland Department of Transportation said $800 million of projects underway have been funded with the new revenue provided by the Transportation Infrastructure Investment Act passed by the General Assembly in 2013.

Eighteen projects totaling $945 million have been completed or funded since the 2014-2019 plan was released last year. The total includes $638.7 million used to pay debt service in 2014 on bonds issued by Washington Metropolitan Area Transit Authority.

The 2013 law raised Maryland's gasoline tax, which had been at 23.5 cents per gallon since 1992, by 3.5 cents in July 2013 with another 0.4 cents added in July 2014 due to inflation. The current gasoline tax of 27 cents per gallon is scheduled to increase by 3.5 cents in January 2015.

The new plan provides $174.8 million to Montgomery County for its share of projects associated with the proposed $2.4 billion Purple Line rail system in the northern suburbs of Washington, D.C. The six-year outlook reflects a recent increase in the estimated cost of the Purple Line in Baltimore to $2.9 billion from the earlier $2.65 billion.

The draft adds $50 million for work on a Chesapeake Bay bridge and removes a $30 million commitment by the state to an intermodal freight facility near Baltimore.

The proposed long-term spending plan, which is updated annually, will be considered by the Maryland General Assembly when it convenes in mid-January.

"It's still in draft form," said Chuck Brown, deputy director of communications at Maryland DOT. "We'll go and meet with the elected officials in each county and then submit it to the General Assembly."

The six-year plan is a sign of the state's resolve to complete projects funded with the additional revenues, said state Transportation Secretary James Smith.

"Our goal with this budget is to get projects out the door and in the field as quickly as possible so citizens can benefit," Smith said.

Revenues during the six-year period are expected to include $3.6 billion of bond proceeds, $6.3 billion from the state gasoline and diesel taxes, $5 billion in federal aid, $3.6 billion of vehicle registration fees, and $938 million from transportation's share of the state corporate income tax.

The spending plan assumes revenues of $862 million if Congress allows states to impose a sales tax on internet purchases.

The 2013 transportation funding law dedicates 4% of revenues from a state internet sales tax to the transportation fund beginning in 2016. If Congress blocks state internet taxes, Maryland's sales tax on gasoline will automatically be increased to provide the anticipated revenues.

Federal grants from the Highway Trust Fund account for 18% of Maryland's transportation spending, but that support could wane over the next six years, Maryland DOT said. Congress extended the HTF's solvency through May 2015 with a $10.8 billion bailout in late July.

State transportation officials will work with Maryland's congressional delegation to protect federal transportation funding, the agency said.

"The continued support of the federal Highway Trust Fund is critical to our ability to enhance, improve and rebuild our infrastructure to compete in a modern economy," the draft plan says.

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