Repairing Maryland's Broken Transportation Trust Fund

Repairing the Transportation Trust Fund  

Maryland's Transportation Trust Fund (TTF) has reached a breaking point, and motorists are being abused. The burden of maintaining and growing the state's transportation infrastructure—roads, bridges, and mass transit alike—has fallen disproportionately on the shoulders of motorists. Meanwhile, mass transit riders continue to pay a fraction of the cost to operate a system they rely on, leaving the state's fiscal foundation crumbling under the weight of an imbalanced approach. My bill HB695"Repairing the Transportation Trust Fund" bill, is necessary to bring about fairness and a functioning highway system.

At one time, the Maryland General Assembly sought to maintain some equity in transportation funding through a 30% farebox recovery mandate. This policy meant mass transit riders covered nearly one-third of the system's operating costs. This historical and very reasonable ratio ensured those using the service contributed meaningful amounts of money towards its upkeep. However, as transit operating expenses rose, the Maryland Transit Administration (MTA) repeatedly failed to meet the target. By 2017, the farebox recovery mandate was repealed altogether.  

The results have been disastrous. Today, transit riders cover just 8% of operational costs. Maryland motorists and taxpayers must fill the gap, subsidizing 92% of mass transit operational costs. Through escalating gas taxes and, last year, the legislature increased vehicle registration fees by 60%, and drivers pay far more into the system than they get out.

Maryland's historical approach to transportation funding isn't working for anyone. Drivers are increasingly frustrated by continuously growing gas taxes—indexed to inflation since 2013—which feel like an endless penalty for simply hitting the road. Residents are voicing frustration over taxes, and local road projects are being canceled. One notable example is the complete defunding of the Route 5/Great Mills Road project.

Transit riders are also frustrated by the heavy reliance on subsidies, which puts the system constantly at risk of budget shortfalls and further stifles improvements or expansions.  

Maryland's TTF, which should be the lifeblood of all forms of transportation in the state, is being drained by inefficiencies and inequities. Transit ridership remains well below pre-pandemic levels, and the MTA's farebox recovery lags far behind other states with comparable systems. While similar transit systems in different parts of the country achieve cost-recovery ratios of 25% or more, Maryland averages a dismal 7-8%.  

If this trend continues, Marylanders from all walks of life will face the consequences. Transit systems will remain chronically underfunded, cutting corners on safety and reliability. This issue impacts everyone, regardless of whether they commute by car, bus, or train.  

HB695 proposes a realistic and measured solution to this funding crisis. By gradually reinstating farebox recovery requirements—starting at 15% in FY2026 and reaching 30% by FY2029—the bill ensures that transit riders contribute a fairer share of the costs associated with operating the system. It doesn't place an undue burden on transit users, as even the 30% target leaves the majority of costs subsidized by the state. What HB695 does accomplish is simple justice, leveling the playing field for motorists who have shouldered the financial responsibility for far too long.  

The bill also stops the relentless indexing of Maryland's gas taxes to the Consumer Price Index, which a decade ago was marketed as a permanent fix for the TTF but has disproportionately impacted drivers and served as a hidden tax hike year after year.

Last year's Gonzales poll clearly shows that Marylanders are united on this issue. A commanding 64% of residents want priorities shifted toward maintaining and repairing roads and bridges. These core infrastructure elements connect communities, enable commerce, and improve quality of life. While transit funding is still essential, it cannot come at the expense of the broader transportation network upon which all Marylanders depend.  

Finally, as Maryland looks for ways to climb out of a three billion dollar structural deficit, it is certain that some in Annapolis will consider implementing a mileage-based tax. HB695 aims to prohibit any mandate requiring the installation of mileage-tracking devices in private vehicles.

HB695 isn't just fiscal reform; it's a moral recalibration. Requiring all users—whether they drive or ride transit—to pay their fair share is common sense. The cost of maintaining Maryland's infrastructure must be shared equitably across the entire system so it can serve everyone effectively.  

If we want safe, dependable infrastructure for future generations, we must take steps now to ensure fairness.  

Citizens, you have a role to play. Call or email representatives and share your concerns about the current system's inequities and inefficiencies. Maryland can no longer afford to continue to kill local highway and bridge projects by kicking the can down a pothole-ridden road.  It's time to repair the Transportation Trust Fund—and in doing so, repair Maryland's transportation future.

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