UTAH'S FUNDING CHALLENGE

Mobility for individuals and businesses relates directly to economic vitality and quality of life. In Utah, demand for transportation infrastructure is increasing, while the resources available to pay for maintenance and improvements cannot keep up. A few factors have contributed to the discrepancy between what we need and what we can pay for using current funding methods. One is unprecedented growth. In fact, Utah is one of the fastest-growing states in the U.S. and accommodating this growth is a statewide issue.

THE SHORTFALL

The gas tax has been the main source of funding for transportation infrastructure, however, due to inflation and more fuel-efficient vehicles it barely covers funding for yearly transportation operations and maintenance on existing Utah roads. The multi-billion dollar discrepancy between demand and available funding requires a close look at all ways to pay for new roads and transit.

WHAT THE LEGISLATURE HAS DONE

The 2007 Legislative session was historic in the amount of funding that was provided for transportation. With a strong economy and surplus revenue, the Governor and the Legislature recognized the transportation-funding shortfall and have begun to address the state's transportation challenges.

$100 million in bonding was identified for corridor preservation for the Mountain View Corridor in Salt Lake County. A $1 billion bond was created to provide funding for various UDOT projects statewide. UDOT is working on a list of potential projects that may qualify for this funding. This list will be presented to the transportation commission and the Legislature for their review and approval.

The general public also voted to fund commuter rail from Provo to Salt Lake and for TRAX extensions to the Airport, West Valley and mid-Jordan with the passage of Proposition 3 in Salt Lake County and the Opinion Question in Utah County. To obtain more information about bills that could impact funding for this project, click here.

The transportation funding challenge is far from over, however. Large surpluses won't last forever, and funding to pay for a number of multi-billion dollar projects have yet to be identified.

MANAGED LANES

In 2003 and 2004, the Legislative Transportation Taskforce studied statewide transportation needs and funding options. The Taskforce identified possible tools to deal with the transportation funding shortfall, including increased statewide sales tax, increased fuel tax, and increased vehicle title registration fees. However, choosing a single method for funding transportation projects would require significant increases in some form of taxes or fees. The legislature also recommended a "Managed Lane Study" to examine strategies for cost-effectively managing transportation capacity and identifying new sources for generating revenue. The strategies that were studied included High Occupancy Vehicle (HOV) Lanes, Reversible Lanes, High Occupancy Toll (HOT) Lanes, and Toll Roads. Various corridors statewide were identified with managed lanes potential, including the Mountain View Corridor (MVC). To read the complete "Managed Lane" report, click here.

ANOTHER FUNDING OPTION--TOLLING

As a result of the "Managed Lane" report and in an effort to examine impacts of various funding strategies, the project team analyzed the potential effects of building the MVC as a toll road. This included determining technologies such as Electronic Toll Collection, identifying toll rates, conducting traffic analysis, determining costs and construction phasing, performing financial analysis, and determining finance and operation structure. Including tolling in the EIS allows for an open and informed discussion, as impacts of all alternatives will be disclosed to allow for a fair comparison. However, no decisions have yet been made regarding tolling. To access the complete Tolling Analysis, click here.