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Why are state-distributed highway revenues decreasing?

While in the midst of budget season, you may have noticed that the State’s estimates of the Motor Vehicle Highway distributions for the last half of 2018 and 2019 are lower than the estimates provided last year. One explanation may be House Bill 1290 passed earlier this year.  This piece of legislation changed the distribution formula of Motor Vehicle Highway revenue to local units of government. 

Before the legislative change, approximately 40% of revenue deposited in the State’s Motor Vehicle Highway Account (MVHA) and 45% of revenue deposited to the Highway, Road and Street Fund were distributed to local units.  The new legislation changed the distribution to local units to 38% from MVHA and 37% from Highway, Road and Street. Since 2018 budget certifications for the Motor Vehicle Highway Fund were based on higher estimates, you may need to make budget adjustments, as necessary, for 2018. 

For more information on this topic, or to learn how Baker Tilly municipal specialists can help, contact our team.

Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and wholly-owned subsidiary of Baker Tilly Virchow Krause, LLP, an accounting firm.

Paige E. Sansone
Partner, CPA
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