ALDOT Statewide TSMO Program Plan ALDOT Statewide TSMO Program Plan 20190522REV | Page 10

and improve reliability on the National Multimodal Freight Network (NMFN) to improve safety and
economic competitiveness (ALDOT, 2017).
In addition to the financial costs related to mobility concerns, research has shown a direct correlation
between physical and mental wellbeing and congestion. Higher commute times have been linked to
decreased energy, increased stress, and higher illness-related work absence. And those that experience
congested driving have increased stress and frustration. Simply stated, safety and mobility have significant
financial and wellness costs to the citizens of Alabama.
Congestion on roadways creates significant costs to commuters, freight drivers, service
providers, and the public in the form of time, money, and wellness deterioration—Alabamians
have a serious challenge.
3.1.3 Transportation Funding
As noted in ALDOT’s 2017 Statewide Transportation Plan, annual revenues for transportation
improvements averaged approximately $1.5 billion. In Alabama, roughly one-third of transportation
revenues ($490 million) come from state sources, with the remaining two-thirds from Federal Aid,
highway bonds, and other sources; gas excise and motor fuel taxes generate 70% ($341 million) of state
revenues.
The Gas Excise and Motor Fuel tax makes up a considerable amount of the state’s portion of
transportation funds; however, Alabama is among the lowest in state gas taxes for both conventional
and diesel fuels. As of July 2018, Alabama’s gas tax was 20.91 cents per gallon, compared to the national
average of 30.54 cents. The State has not increased the gas tax since 1992, with the most recent
referendum this year not passing. However, this issue has gained momentum and is being considered
during the 2019 legislative session. (Note: as of 3/12/2019, the State of Alabama legislature passed an
increase in the gas tax by 10 cents per gallon by 2021).
There has been a steady decline in Motor Fuel Tax Revenues over the last two decades, made more
dramatic if adjusting for inflation. While there has been a decline in revenues to support transportation
infrastructure, there also have been dramatic increases in the use of this infrastructure. For example,
between 1990 and 2015, the usage of Alabama’s roads increased by more than 25 billion VMTs.
Low tax revenue on gas is only one part of the funding issue. Cars also are rapidly becoming more fuel
efficient, decreasing the need for fuel. Beyond stagnant gas taxes in Alabama, the decreased
dependence on motor fuels due to increased fuel efficiencies has decreased revenues despite increasing
costs and congestion. So, at the same time we’re witnessing greater usage of infrastructure while the
gas tax has not increased, vehicles are becoming more efficient at how they use fuel, furthering the gap
between revenue and need.
Many predictions forecast an imminent change in how DOTs approach funding transportation
infrastructure improvements, with a total move away from gas taxes in as soon as a decade. A major
focus in the transportation funding world now is collaboration and funding partnerships, which are
some of the core components of TSMO strategies.
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