SHA presents mileage‑based user fee pilot and flags funding tradeoffs as preservation needs rise

The Department of Legislative Services presented the State Highway Administration's FY25 analysis, noting only a modest operating increase for SHA and significant emphasis on system preservation in the six‑year capital program.

DLS described a small pilot launched in partnership with the Eastern Transportation Coalition to test mileage‑based user fees (MBUF). The pilot is a simulated program (no funds will change hands) that began in February with under 150 participants using multiple reporting options (GPS, in‑vehicle telematics, an app or odometer photo) to generate data on per‑mile simulations and credits against fuel tax paid.

DLS also reviewed SHA's managed lanes and American Legion Bridge project (the original P3 private partner left the effort), noting the administration reduced scope in order to pursue federal discretionary grants; one large grant application for about $2.4 billion was denied and another $2.2 billion application remains pending. DLS asked SHA to explain funding and readiness implications.

SHA representatives highlighted investments in vulnerable user safety (Pedestrian Safety Action Plan), significant system preservation spending (nearly $945 million in FY25 for preservation/minor projects), and vacancy rate improvements (from ~12.1% to about 5.7%). Observers urged SHA to prioritize complete streets and to consider redirecting some federal formula and discretionary funds to preservation and multi‑modal options.

Next steps: DLS and SHA will continue discussion of MBUF pilot results (data analysis expected in May) and SHA will update the committee on managed lanes grant pursuits and project readiness.