HIGHWAY FUND
This analysis does not dive into the intricacies of the $232 million projected shortfall in Highway Fund, distinct from the more than $400 million General Fund biennial shortfall. Broadly, Maine lawmakers should ensure maintenance of critical infrastructure—roads, bridges, and ferries—before spending millions on “investments” in wasteful and anti-competitive energy and broadband projects.
Maine Representative Rich Cebra of Naples sponsored LD 43 in the 129th Legislature, which proposed to dedicate all sales tax revenue from sales of motor vehicles and goods related to motor vehicles to the Highway Fund for road and bridge maintenance. Over the last two fiscal years, including a brief period of depressed sales in March and April 2020, the Office of Tax Policy reports nearly $11 billion of taxable sales from “all transportation related retail outlets.” These sales brought in more than $500 million to the General Fund over the previous biennium. Dedicating less than half of these funds, or just the sales tax revenue from vehicle sales, could cover the entire Highway Fund shortfall.