GOVERNOR O’MALLEY, SENATE PRESIDENT MILLER, HOUSE SPEAKER BUSCH PROPOSE TRANSPORTATION INVESTMENT PLAN

Five-year, $3.4 billion investment projected to support 44,000 jobs
ANNAPOLIS, MD (March 4, 2013) – Governor Martin O’Malley, Senate President Thomas V. Mike Miller, Jr. and House Speaker Michael E. Busch today unveiled a joint innovative, multi-faceted plan to increase investment in the State’s transportation system, relieve congestion, and create jobs. The plan raises an average of $800 million annually, and is projected to support more than 8,800 jobs each year over a five-year period. During that five-year period, the package will generate an additional $3.4 billion for Maryland highway and transit projects. 

“Building a 21st Century transportation network won’t happen by itself. We cannot afford the cost of inaction,” said Governor O’Malley. “Together, with Senate President Miller and Speaker Busch, we’re announcing a plan that is balanced, fiscally responsible and is projected to support 44,000 jobs. This plan will help us generate the revenue we need to ease some of the worst traffic congestion in the nation while building and repairing our transportation infrastructure.”

“Our Transportation Trust Fund is about to go broke and we must act now,” said Senate President Miller. “Working together and reaching the consensus reflected in the proposal is a tremendous step forward that can turn our transportation crisis around. I remain committed to working as hard as I can with the Speaker and the Governor to get this done.”

“We have worked hard over the past few weeks to craft a transportation initiative that balances the impact on the consumer with the future infrastructure needs of the State,” said House Speaker Busch. “We must make strategic investments and leverage private dollars to move our State forward. A strong transportation system is the cornerstone of a strong economy.”

The proposal unveiled today includes the following measures that would become effective July 1, 2013:
Reduce the state tax on gasoline by five cents from 23.5 cents per gallon to 18.5 cents per gallon;
Index the 18.5 cents per gallon state gasoline tax to the Consumer Price Index;
Phase-in application of the state sales tax on the wholesale price of gasoline starting at two percent July 1, 2013 and increase to four percent July 1, 2014;
Transportation to receive a percentage of revenue generated by implementation of the federal Marketplace Equity Act (enabling states to apply sales tax to internet sales, provided passage by Congress.);
Index transit fares charged by the Maryland Transit Administration to the Consumer Price Index;
State Treasury to issue General Obligation Bonds for federally required environmental improvements.
The transportation initiative proposed today also contains a “lockbox” provision that outlines a series of requirements that must be met in order to make any transfers from the Transportation Trust Fund, ensuring that revenue generated remains dedicated to transportation.