County Commission | The Magazine December 2018 | Page 23

FROM THE COVER
A Funding Problem Requires
a Funding Solution
How did Alabama get in this hole? And how do we get out?
Average
New Car Cost
1992 - $16,336
2018 - $37,007
Steady
improvements in
fuel efficiency mean
vehicles are putting
increasingly more wear
and tear on roads
per gallon
of gas.
Alabama’s gas tax
has been the same
since 1992, when the
Legislature increased it
by a nickel.
State law
guarantees county
governments a critical
percentage of gas tax
revenues. Unlike cities,
counties cannot collect a
gas tax without approval
from the State
Legislature.
In the last 15 years,
road construction costs
have skyrocketed
more than 70%.
Sources: Alabama Transportation Institute at the
University of Alabama, DRIVE Alabama, Federal Highway
Administration and U.S. Census Bureau
Counties
own 54% of
Alabama’s bridges, and
county roads provide vital
connections for residents,
property owners, agriculture,
forestry and suppliers
for the automotive
industry.
Where Does Road and Bridge Money Come From?
Unlike cities, counties in
Alabama cannot establish a fuel
tax for roads and bridges on their
own. For counties, approval from
the Alabama Legislature is required,
and some counties have local
support for their road systems.
However, the lifeblood of
county road department budgets
comes from state and federal
sources. Here’s a breakdown of
major sources that are common to
all counties:
State Fuel Taxes
The mainstay of county road
budgets is the county’s share of
the state gasoline tax. The county
portion is largely divided according
to population, with another amount
split equally among all 67 counties.
These funds are protected by
strict earmarks to ensure dollars
benefit roads and bridges.
Federal Aid
Counties receive a small
percentage of federal taxes on
gasoline and diesel. Distribution
is handled by the Alabama
Department of Transportation,
and a 20% match is required. For
example, a county must contribute
$100,000 from other sources to
secure $500,000 in federal road
dollars.
Federal funds can only be spent
on certain roads and bridges that
meet criteria from the Federal
Highway Administration.
COUNTY COMMISSION | 23