Transportation - Regional Authorities - Established
Summary
SB935 would create three new regional transportation authorities in Maryland: one each for the Baltimore region, the Capital region, and Southern Maryland. Each authority would be a State instrumentality with a governing board made up of participating county and municipal officials, legislative appointees, and gubernatorial appointees. The authorities would be responsible for preparing regional transportation plans, prioritizing projects of regional significance, coordinating with State and federal agencies, and reporting annually to the General Assembly.
The bill also gives participating counties new local revenue tools to support transportation projects. Counties in the three regions could impose a transportation authority sales and use tax surcharge, a hotel surcharge, and a transfer tax surcharge, subject to statutory caps. Revenue from those surcharges would be deposited into newly created regional transportation funds, which are designated as special, nonlapsing funds and may be used only for transportation facilities in the relevant region. The bill further authorizes the authorities to issue bonds, notes, and other obligations backed by those dedicated revenues.
Impact
SB935 would amend Maryland tax and transportation law to authorize new regional surcharges and create three dedicated transportation funds outside the State’s general fund structure. It would also exempt those funds from the usual rule that net interest on State money in special funds accrues to the General Fund, ensuring interest stays with the regional funds. In addition, the bill would expand local taxing authority in the affected regions and establish a new framework for regional transportation planning, project selection, and financing under a new Title 10.5 of the Transportation Article.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available record. Based on the bill text alone, the measure appears designed as a major regional infrastructure financing proposal with an emphasis on local control, dedicated funding, and long-term transportation planning. The inclusion of environmental and social justice considerations in the authorities’ purposes suggests a broad policy framing rather than a narrow revenue measure.
Contention
The most likely points of contention are the new local tax surcharges and the creation of regional authorities with bonding power. Counties and taxpayers in the affected regions may differ on whether to adopt the surcharges, how high to set them within the statutory caps, and which projects should receive funding. There may also be concern about governance and accountability, since the authorities would have significant discretion over planning, project prioritization, and revenue use, while the bill limits the funds to transportation purposes and makes expenditures subject to the State budget.