This category includes funding mechanisms that are intended to provide new revenue for transportation projects without incurring additional debt. States can find "new revenue" for transportation by imposing new transportation-related taxes or fees, raising existing transportation related taxes or fees, shifting money from other programs, or changing the way taxes and fees are collected or imposed.
For transportation projects, new revenue funding mechanisms are appealing. At first glance, such mechanisms do not require the state to go into debt and can place the cost for transportation projects squarely on the users who benefit most from the transportation system. Not all new revenue sources are equal, however. Tax and fee impositions or raises can be politically unpopular, and many new revenue sources generate limited money for transportation projects. In addition, some argue that many new revenue mechanisms are not truly new, but merely reallocate money from other sources.
Potential sources for new transportation revenue include elimination of transportation revenue diversions, gas tax, the state general fund, a statewide general sales tax dedication, other taxes and fees, congestion pricing, tolling, fees tied to mileage and other new revenue sources.