Transportation Financing Strategies

Maryland-National Capital Park and Planning Commission

Like many jurisdictions, Prince George’s County is facing major funding shortfalls for road construction and maintenance.  Traditional gas tax funding has not kept pace with the needs.  The County’s Adequate Public Facilities Ordnance requires that developers improve intersections and roads impacted by new development; however, that is not sufficient to deal with the full range of impacts on the overall transportation networks.  PES conducted a literature search and prepared case studies of alternative approaches to transportation finance.  Among the tools evaluated were mileage-based fees, congestion pricing, assessment districts, impact fees and value capture (e.g., tax-increment financing).  Case studies of financing tools used in Portland, OR; Montgomery and Howard counties, MD; Broward County, FL; and DeKalb County, GA provided insights into the details of different funding tools and implementation approaches.  PES also examined the differential impacts on County transportation maintenance costs of residential developments at varying densities.