By Dick Hall-Sizemore
That is how Aubrey Layne, Secretary of Finance, summed up his explanation to the House Appropriations Committee of April’s 15% drop in transportation revenue
All of the major components of the transportation revenue were down in April, but the biggest danger sign was in the motor vehicle sales and use tax. That source is the largest single state source of revenue for the highway maintenance and operation fund and the second largest source for the transportation trust fund. Its revenues in April were down 41% compared to April a year ago.
Despite the sharp drop in April, the year-to-date transportation revenues are still running 5.6% higher than for the comparable period last year, and significantly higher than the 3.3% decrease that had been forecast. However, the Governor’s stay-close-to-home policy, continuation of extensive telecommuting, and social distancing will likely bring the total transportation revenue below last year’s total. Revenues should pick up after July 1, when the increase in the gas tax becomes effective, although the increase will likely be less than was forecast in the session.There are currently no comments highlighted.