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Senate committee rejects bill to add $5 vehicle tag fee to fund public transit
Summary
A Senate General Fund Committee defeated Senate Bill 11, which would have added a $5 vehicle tag fee to generate a local match for public transportation and draw down federal funds. Supporters said the fee would leverage federal dollars and help rural transit; opponents voted the bill down 5–7 and it was not reported favorably.
Senator Coleman Madison presented Senate Bill 11 to the Senate General Fund Committee, saying the bill would create a dedicated funding source for public transportation by adding a $5 vehicle tag fee to generate local matching funds for federal transit grants. “Let me just say that Alabama has a transportation trust fund that was passed, I think, in 02/2018 but was never funded,” Coleman Madison said. “As a result of that, we have really allowed just millions of dollars to go back to the federal government because we have not been able to match it.”
The sponsor said a $5 fee is “nominal” and estimated, based on last year’s figures, the fee would have generated about $26 million and would yield a 4:1 or 5:1 federal match on some projects. A transit coalition representative who addressed the committee said the fee “would earn like $30 to $40 from this money,” and stressed rural providers most urgently need operating-match money so they do not have to return federal funds.
Committee members questioned whether the fee should be levied by the state or by counties. Senator Jones said he had previously suggested making the fee optional at the county level; Coleman Madison said the bill includes an opt-out mechanism and “the counties have to decide.” Coleman Madison also said the bill would allow counties to collaborate through regional planning commissions and that collected funds would remain in the originating county before remittance of a state portion.
Supporters framed the bill as a workforce-development measure that would help people reach jobs, medical appointments and education. Senator Stewart, speaking for a rural district, said the measure would help workforce participation, reduce road congestion and support economic growth. Opponents on the committee raised objections sufficient to defeat the measure on a roll call: the chair announced “We have 5 to 7. Bill is not given a favorable report.”
No amendment or alternate funding source was adopted during the hearing. Coleman Madison said she expects the idea will be reintroduced in some form and welcomed other members to carry future versions of the proposal.
Votes at a glance: Senate Bill 11 — committee vote: 5 yes, 7 no; outcome: not given a favorable report.
