Transportation - Highway User Revenues Capital Grants - Calculation
Summary
HB637 would change the formula used to calculate highway user revenue capital grants distributed from the Transportation Trust Fund to Baltimore City, counties, and municipalities. The bill amends Transportation Article § 8-403 to revise the percentage shares of funds credited to the Gasoline and Motor Vehicle Revenue Account that must be appropriated for local capital grants, with the new percentages beginning in fiscal year 2026 and continuing thereafter. It also removes the prior phase-in schedule that had separate percentages for fiscal years 2026, 2027, and 2028, replacing it with a single ongoing allocation formula.
Under the bill, beginning in fiscal year 2026, Baltimore City would receive 12.1% of credited funds, counties would receive 15.3%, and municipalities would receive 2.6%, subject to the existing requirement that debt service, operating expenses, and other capital program needs be funded first. The bill does not change the underlying sources of highway user revenues in § 8-402, only the distribution percentages for these capital grants. The effective date is July 1, 2025.
Impact
HB637 would amend Maryland’s Transportation Article to alter the statutory distribution of highway user revenues for local capital grants, increasing the appropriated shares for Baltimore City and especially counties while slightly adjusting the municipal share. The bill would directly affect the Transportation Trust Fund’s capital grant calculations and the amounts available to local governments for transportation-related capital purposes, while leaving the revenue sources and general funding structure intact.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the bill appears to be a technical but financially significant transportation funding measure rather than a highly contested policy change. Its structure suggests support for local transportation funding, particularly for counties and Baltimore City, with the main issue being the size and timing of the revised allocations. No formal sentiment from hearings or roll calls is available in the record provided.
Contention
The likely point of contention is how much of the Gasoline and Motor Vehicle Revenue Account should be reserved for Baltimore City, counties, and municipalities, and whether the revised percentages fairly balance local transportation needs against state-level Transportation Trust Fund obligations. Counties may favor the larger share under the new formula, while any reduction or delay in other allocations could raise concerns among municipalities or state budget stakeholders. Because the bill changes a funding formula, debate would likely center on fiscal impacts and distributional fairness rather than on the underlying transportation policy.