The Sconi

When the Wisconsin Legislature reconvenes in January 2025, addressing the state's transportation funding will likely be a primary concern. A recent report by the Wisconsin Policy Forum highlights that policymakers are "nearing a crossroads on how to fund the state’s transportation system."

The report points out that revenue for transportation has slowed or declined over recent years, while costs have risen. The decline in funding is attributed largely to the repeal of indexing the motor fuel tax. The gas tax, which accounted for 65% of transportation fund revenue in 2004, contributed only 38% by 2024. According to the report, if the gas tax had not been repealed, it would have generated an additional $2.9 billion from April 2007 to June 2022.

To address these challenges, the Forum suggests several options for funding the transportation system:

- Increasing revenue transfers from the general fund to the transportation fund.

- Raising motor fuel taxes and registration fees.

- Implementing a mileage-based fee on vehicles.

- Introducing highway tolls.

- Extending sales tax to motor fuel.

- Allowing local governments to enact local sales taxes.

- Modifying registration fees based on vehicle value or weight.

- Imposing right-of-way development fees.

"As state leaders idle at the current crossroads," states the report, "they are weighing decisions with major implications for driver’s pocketbooks and the economy as a whole. The state now risks falling behind on transportation funding, and it has few if any shortcuts that it can take. Either the state will have to forego spending and sacrifice road quality over time, or it will have to tap into funding sources such as the gas tax, vehicle registration or title fees, general tax dollars, mileage fees, local taxes for fees."