Funding Sources
The Highway Trust Fund
Federal Highway Trust Fund (HTF) distributions make up a portion of the region’s revenue that goes toward highway and mass transit projects. However, with the growing popularity of electric and hybrid vehicles, the fuel taxes that supply 83 percent* of all receipts to the HTF have declined. The federal gas tax has not been raised since 1993, so the value of fuel tax dollars has also declined over time.
The HTF is projected to collect between $38 and $42 billion each year between 2023 and 2033, but yearly spending during that time frame is projected to increase from $48 to $72** billion. Starting in 2027, the fund is expected to be insolvent. The shortfall starts at $18 billion in 2027 but increases to $180 billion in 2033. Additional revenue sources will need to be developed to support the HTF after 2027.
The Infrastructure Investment and Jobs Act
Federal Highway Trust Fund (HTF) distributions make up XX% of the region’s revenue that goes toward highway and mass transit projects. However, with the growing popularity of electric and hybrid vehicles, the fuel excise taxes that supply 83 percent* of all receipts to the HTF have declined. The federal gas tax has not been raised since 1993, so the value of fuel tax dollars has also declined over time.
The HTF is projected to collect between $38 and $42 billion each year between 2023 and 2033, but yearly spending during that time frame is projected to increase from $48 to $72 billion. Starting in 2027, the fund is expected to be insolvent. The shortfall starts at $18 billion in 2027 but increases to $180 billion in 2033 . Additional revenue sources will need to be developed to support the HTF after 2027.
*The Status of the Highway Trust Fund: 2023 Update. https://www.cbo.gov/system/files/2023-10/59634.pdf, 2023
**Congressional Budget Office (CBO)
State Fuel Taxes
Today, fuel taxes make up about 63% of state revenue sources for transportation projects and programs. Increasing fuel efficiency and numbers of electric and natural gas vehicles on the road are expected to result in fuel tax losses of $85.4 million in state fiscal year 2027-2028.* Losses are projected to increase to $2.4 billion annually in SFY 2047–2048. Over the span of 30 years, from 2018 to 2048, the cumulative fuel tax revenue loss is projected to be $18.3 billion. A bill that would have imposed an additional annual licensing tax on electric and plug-in hybrid vehicles failed to pass the Florida Senate in 2023.
Electric vehicles are expected to increase in Florida from 43,000 in 2018 to more than 3.6 million in 2048.
State Motor Vehicle Fees
Funding transportation from vehicle-related revenues has long been a key resource in Florida. There are five types of motor vehicle fees: initial registration fee, motor vehicle license fee, motor vehicle title fee, motor vehicle license surcharge, and rental car surcharge. Motor vehicle fees remain fixed until changed by legislative action.
State Aviation Fuel Tax
Florida imposes an aviation fuel tax of 4.27 cents per gallon excise tax on aviation fuels. Unlike the state fuel tax, the aviation tax remains fixed at its current level, until changed by legislative action. The State Transportation Trust Fund receives 92% of the proceeds, and the remaining 8% is deposited into the General Revenue Fund.
State Documentary Stamp Tax
The Documentary Stamp Tax is levied on documents such as deeds, stocks and bonds, written obligations to pay money, mortgages, liens, and other evidence of indebtedness. The Florida State Legislature determines what percentage of the revenue from this tax is allocated to the State Transportation Trust Fund. 2021 legislature reduced the allocation from 24.2% to 20.5%, lowering the maximum amount that could be transferred from $541.75 million to $466.75 million.
*Center for Urban Transportation Research’s Report on Autonomous Vehicle (AV) and Alternative Fuel Vehicle (AFV) Florida Market Penetration Rate and VMT Assessment Study
Miami-Dade, Broward, and Palm Beach Counties share some common local revenue sources used as part of their LRTPs. These include local option gas taxes, ad valorum taxes (taxes derived from assessed value), development fees, and transit receipts.
Additional funding possibilities exist at the county level, including enacting new local revenue sources, assessing regulatory fees, and levying special assessments for the construction, maintenance, or repair of transportation facilities.Beyond new funding sources are financing tools and strategies to advance transportation projects. Potential financing mechanisms include general obligation bonds, revenue bonds, special tax bonds, governmental guarantee, or public-private partnership. Such tools typically come into play during the project development and implementation process, relieving the burden on existing revenue sources. This expands the availability of revenues, advances more projects, and increases the effective use of existing revenues.
How Will the 2050 RTP Be Funded
Funding for the 2050 RTP’s projects and programs comes from numerous federal, state, and local sources. Since the last RTP update in 2045, some significant funding sources have begun to decline. Overall, federal and state revenue allocated to Southeast Florida for the 2050 RTP are projected to be less than 20% of what they were for the 2045 RTP. To account for the changing economic landscape, the MPOs will reprioritize needs, seek new funding sources, and pursue discretionary grants through the federal Infrastructure Investment and Jobs Act (IIJA).
Estimated Federal/State Revenues 2045 RTP vs. 2050 RTP (2023$ in millions)
