Ways and Means amendment shifts $2.2M to transportation, raises agency concerns over mileage fee

A legislative committee voted 7‑4 on March 25, 2026, to report a Ways and Means amendment that transfers $2.2 million from a TIF fund into the state T fund, directing $1.7 million of that amount for town highway aid and leaving roughly $500,000 to offset estimated short‑term revenue losses related to a new mileage‑based user fee (MBUF).

The vote followed a Joint Fiscal Office briefing and testimony from the Agency of Transportation. Logan Mayberry of the Joint Fiscal Office told members the MBUF would not generate revenue in fiscal 2027 because of the program’s enrollment and billing timeline, and he provided multi‑year estimates: "In fiscal year '27, the MBUF wouldn't be bringing in any revenue," Mayberry said, noting an anticipated FY28 range of about $350,000 to $1 million depending on prepayments and payment timing, and an estimated MBUF revenue of roughly $2.6 million by FY29. He said the repeal of the $89 EV infrastructure fee would reduce projected revenue; Mayberry described a roughly $1.2 million EV‑fee reduction in one year and a net FY29 benefit of about $1.2 million once MBUF revenue is fully phased in.

The agency witness, Michelle Bloomhour of the Agency of Transportation, urged caution. She characterized the $2.2 million as a fund‑balance one‑time item that the agency did not budget for recurring needs and said the timing and compressed notice of 11 pages added by Ways and Means left the agency with "major concerns." Bloomhour warned that moving TIF balance through the T fund could alter statutory characteristics required for Transportation Infrastructure Bond (TIB) fund uses and said the proposed MBUF reconciliation process — in which drivers could prepay, pay monthly or quarterly, and be reconciled at a later inspection — creates operational complexity. "We're concerned that it'll be much more overly complicated than the process we had put forward," she said, citing vehicle‑sale and reconciliation edge cases that could increase administrative costs.

Members pressed staff and the agency on forecast assumptions and distribution mechanics. Representatives asked when the EV infrastructure fee would stop being collected if the amendment is enacted; staff said collections would cease January 1, 2027. The committee also discussed local option tax excesses and how roughly $400,000 in one‑time excess local option tax revenue would be split, with about $200,000 estimated to flow to town highway aid.

Representative Clark asked whether using TIF fund balances for one‑time transfers could affect future bond ratings by changing the long‑term character of TIF funding; Joint Fiscal Office staff replied the transfer uses excess balances that are not planned for future obligations and should not reduce the fund's capacity to back bonds.

The committee recorded the Ways and Means amendment as passing favorably 7 to 4 and said it would report the amendment to the floor with that tally. The hearing then moved to discuss the student transportation portion of the package.

Next steps: the amendment will be reported to the floor with the committee's 7‑4 recommendation; staff indicated further budget detail and reconciliations will be addressed in subsequent materials and floor debate.