Budgeting and Appropriations | Annual budget; fiscal year begins July 1. |
Bonding or Pay-as-You-Go | Combination of bonding and pay-as-you-go financing. MDOT uses bonding only for its capital program, and the level of debt is constrained by broader state debt limitations, a transportation debt outstanding limit, and coverage ratio limits agreed upon with bondholders. The state has also used nontraditional certificates of participation and GARVEE bonds. |
State-Level Funding Provided for DOT Budgets | FY 2011 (approved): $2.41 billion |
Allocation of Federal Transportation Funds to the DOT | Federal transportation funds are appropriated by the General Assembly to different programs within each MDOT modal administration's budget-for example, to the capital program for the State Highway Administration within MDOT. The General Assembly appropriates at the program level, but reviews project-specific funding in the Consolidated Transportation Plan. Certain federal funds (e.g., GARVEE bond revenue) flow directly to MDOT, not through the state budget. |
Allocation of State Transportation Funds to the DOT | As with federal funds, the General Assembly appropriates state transportation funding at the program level, but reviews project-specific funding in the Consolidated Transportation Plan. |
Traditional State Funding and Finance for Highways | Fuel taxes; motor vehicle/rental car sales taxes; vehicle registration/license/title fees; truck weight fees; tolls; interest income; corporate income tax; general sales tax; revenue bonds. |
State Funding and Finance for Other Modes | Transit, rail, aviation, ports and bridges: Funded by the same revenues as highways through the Transportation Trust Fund. Other revenue sources include the following. Transit: Fares. Rail: Operating revenues for commuter rail. Aviation: Operating revenues collected from airlines and vendors. Ports: Operating revenues. Toll highways, bridges and certain untolled portions of I-95 and I-395 are funded through revenue-backed bond proceeds and tolls collected by the Maryland Transportation Authority (not MDOT). |
Innovative Transportation Funding and Finance | MDOT can use GARVEE bonds; Build America Bonds; federal credit assistance (TIFIA); congestion pricing; PPPs (authorized in regulation); design-build (authorized in statute, used as a component of at least one project); traffic camera fees; container fees; and toll credits or "soft match." The Maryland Transportation Authority can use GARVEE bonds; federal credit assistance (TIFIA); congestion pricing; and toll credits. Starting in FY 2013, all traffic camera fees will be transferred to the Transportation Trust Fund; they currently are split between that fund and the general fund. |
Dedicated/Restricted State Funds and Revenues | Maryland has a consolidated, multimodal Transportation Trust Fund where all funds are collected, then spent on each mode. State statutes specify what revenues or percentage of revenues are deposited into the fund (e.g., Md. Tax General Code Ann. §2-1103 and §2-1104) to be used for transportation-related purposes. MDOT may use the Transportation Trust Fund for any lawful purposes related to the exercise of its rights, powers, duties and obligations (Md. Transportation Code Ann. §3-216). Expenditures from the fund must be in accordance with relevant legislative appropriations. |
DOT Authorized to Retain Surplus Funds | Yes. MDOT is funded through the Transportation Trust Fund. Any funds not used in a fiscal year are retained by the Transportation Trust Fund unless otherwise specified. |
Legislative Approval Required to Move Funds Between Projects | No. Annual budget bill language requires MDOT to notify the budget committees of proposed changes to the transportation capital program that will add a new project or increase a project's total cost by more than 10 percent or $ 1 million due to a change in scope, but legislative approval is not required. |
Transportation Funding Allocations through Local Aid | A percentage of the Gasoline and Motor Vehicle Revenue Account in the Transportation Trust Fund is allocated to the city of Baltimore (by specified percentage) and to counties and municipalities by statutory formulas based on road miles and motor vehicle registrations (Md. Transportation Code Ann. §§8-401 et seq.). Federal funds are allocated to Baltimore and local bridges. Funding uses are limited to debt service and transportation-related construction and maintenance costs, except in Baltimore and Kent County. |