By Nolan Miles
P3 Kentucky Staff Writer
The state of Utah can no longer rely on gas taxes to fund statewide infrastructure, leading lawmakers to explore public-private partnerships as a solution for economic development.
Since May 2017, the state’s Legislatures Transportation Governance and Funding Task Force has been working to find new methods of funding Utah infrastructure, including leasing infrastructure assets to private companies.
“Funding is becoming more challenging. We’re seeing vehicles becoming more fuel-efficient, (and) we’re eventually going to have an electrified fleet,” said Marc Scribner, a senior fellow with the Competitive Enterprise Institute. “That means that the fuel tax revenue that traditionally supports most of these investments is no longer going to be there.”
The concept of “asset recycling” would allow states to transfer maintenance costs by selling or leasing publicly owned revenue-generating assets to private sectors. The option would allow funds to be generating from their own projects as opposed to taxpayers.
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