Current ChallengesWhat challenges does ohio face with transportation funding?
Less gas usage = less gas tax revenue
As we just learned, the gas tax is the primary source of roadway funding in Ohio. While that system has worked for years, vehicles are becoming more efficient and are getting better gas mileage, and an increasing amount of vehicles don’t require any gas at all. While this is great for reducing harmful emissions, it means fewer dollars available for roadway improvements and an uneven distribution of the funding makeup for Ohio drivers.
Ohio Vehicles Miles Traveled (In Millions)
Ohio state gasoline tax receipts (In Billions)
Percentage of Current Ohio Electric Vehicle Drivers
Fuel consumption is expected to drop 40% through 2040 while electric vehicle adoption by Ohioans is expected to rise 30%
The Inflation Reduction Act provides new incentives for new and used EVs, and the National Electric Vehicle Infrastructure (NEVI) grant provides funding to states to strategically deploy EV charging stations. This means electric vehicle market share will likely continue to grow.
Rising costs for road upkeep & improvement projects
Construction costs to maintain and improve our roads and bridges are also increasing. With a decrease in gas tax revenue and an increase in maintenance and improvement costs, a new revenue system is being studied. For example, in one year construction costs in Ohio increased 15%.
Inflation of Construction Costs in Ohio