Legislative economist warns Vermont transportation revenues largely flat as construction costs surge

Legislative economist Tom Pivett told the Senate Transportation Committee Thursday that Vermont's core transportation revenue streams are effectively flat while construction costs and one-time federal funds are complicating long-range planning. Committee Chair Rich Westman convened the session.

Pivett said the gas tax and most vehicle-related revenues provide limited growth, leaving the state to rely on a few dollar-linked sources such as the motor vehicle purchase-and-use tax and intermittent federal grants. "Most of the revenue within transportation is flat," Pivett said. He told senators that purchase-and-use receipts are one of the few state-collected taxes that tend to rise with price, but that most other transportation categories show minimal annual growth.

The forecast Pivett presented shows modest real growth of roughly 1 to 1.5 percent annually for the major…