Transportation Trust Fund May Not Be Able to Satisfy State’s Infrastructure Needs

An informational report released Monday by Legislative Auditor Daryl Purpera says revenues of the state’s Transportation Trust Fund (TTF) may not be sufficient to address transportation infrastructure needs while an estimated backlog of $12 billion in construction projects lingers.

The auditor’s report stated, “With a significant rise in the costs of construction, a decline in federal funds, and only modest growth in state funding, there is concern that the TTF may not be able to address the transportation infrastructure needs of the state.”

TTF revenues consist of “motor fuels (gasoline, diesel, and special fuels) taxes, federal receipts, motor vehicle license tax, aviation fuel tax, miscellaneous fees and fines, and interest earnings.” In fiscal year 2014, total TTF revenues were nearly $1.3 billion according to the state auditor’s report.

Auditors determined that TTF revenues are being distributed as required by law. In addition to being used by the Department of Transportation and Development for capital outlay projects and operations, TTF funds are also used to supplement the TIMED debt service; for appropriations to the Office of State Police for traffic control purposes; and as funding for the Parish Transportation Fund to maintain, construct and repair parish roads.

According to the auditor’s report, the 4-cent motor fuels tax levied by the state to fund TIMED projects isn’t adequately funding payments for the related debt service. From fiscal years 2009 to 2014, more than $138 million in TTF motor fuels taxes has been used to supplement the TIMED debt. Estimates indicate an additional $1.2 billion in future TTF funds will be needed over the next 30 years to pay off the TIMED debt.

In addition, disbursements to the State Police for FY 2012 through FY 2014 totaled $152.7 million, and appropriations for FY 2015 totaled $59.8 million. Legislation passed in the 2015 session has restricted the amount of TTF funds to the Office of State Police in future years.

The auditor’s report also disclosed that the funding requirement for the Parish Transportation Fund “… has been exceeded by approximately $99 million over the last six fiscal years.”

State officials are looking into additional methods to increase funding for the program. Several bills signed into law from the 2015 legislative session aim to increase revenue for transportation purposes in Louisiana. In its response, DOTD concurred with the information in the auditor’s report.