(JEFFERSON CITY, MO) – Governor Mike Parson has signed SB 262 into law, which will increase transportation funding for critical state and local infrastructure projects across the state of Missouri. …
(JEFFERSON CITY, MO) – Governor Mike Parson has signed SB 262 into law, which will increase transportation funding for critical state and local infrastructure projects across the state of Missouri.
"With nearly $1 billion in unfunded transportation needs each year, we can no longer wait for another day or another generation. We must change course and address these problems head-on," Governor Parson said. "SB 262 provides vital revenue that will help us fund essential road and bridge projects all across the state. Quality roads and bridges increase the efficiency and safety of our roadways, invite travelers and business investment, and save Missourians money."
Missouri has the seventh largest transportation system in the nation but only ranks 45th in available revenue per road mile. Over the last 25 years, the state has not significantly increased funding streams for state or local transportation projects, while the cost to maintain Missouri roadways has continued to increase significantly.
SB 262 could increase transportation funding by more than $450 million once its provisions are fully implemented. An estimated $330 million per year would be available for the State Road Fund administered by the Missouri Department of Transportation (MoDOT), and nearly $125 million – approximately 30 percent of total revenue – would go directly to cities and counties for local transportation projects.
All revenue that SB 262 will generate is constitutionally required to be used to maintain roads, bridges, and the overall transportation system. MoDOT will use these funds to help cover the more than $8.25 billion funding gap for high priority annual transportation needs that have been identified over the next 10 years.
Under SB 262, revenues for the State Road Fund and local transportation projects will increase by 2.5 cents per gallon of fuel annually for five years, starting in 2021. However, Missourians that do not wish to increase their contributions to state and local roadway repair and replacement projects can submit the required documentation – including fuel receipts – to the Missouri Department of Revenue each year for a refund.
"Whether rural, suburban, or urban, all Missourians benefit from better roadways," Governor Parson said. "SB 262 is an investment in our state that will benefit Missourians for generations to come, and we thank Lt. Governor Kehoe, Senator Schatz, and Representative Ruth for getting this legislation passed and helping move Missouri forward."