For too long, Connecticut has relied on in-state taxes, fees and the state’s credit card to fund and finance investments in transportation infrastructure. CT2030 leverages new funding and financing sources as well as Connecticut DOT efficiencies to deliver the highest possible return on investment at the lowest possible cost to Connecticut residents. By bringing in out-of-state funding and pursuing smart federal financing opportunities, we can dramatically reduce the cost of projects to Connecticut taxpayers
CT2030 is a vital opportunity to put federal and other out-of-state revenue to work for Connecticut.
CT2030 doesn’t only transform Connecticut’s infrastructure–it transforms the ways infrastructure projects are paid for.
The U.S. Department of Transportation provides Connecticut with up to $750 million in federal funds each year for highway and transit programs, provided the state contributes its own matching funds and maintains a state of good repair. These funds predominantly include apportionments and grants and are separate from federal loans. CT2030 preserves the full $750 million in federal funds, separate from any federal loans.
The STF is a separate account dedicated to improving Connecticut’s transportation infrastructure and paying for operating costs at our Departments of Transportation and Motor Vehicles, such as snowplowing and bus and rail service. Revenues deposited in the STF come from fuel taxes, transportation-related fees and fines, a portion of the general sales tax, and a portion of the car sales tax. To accelerate those revenues, CT2030 transfers 100% of car sales taxes to the STF by 2023, consistent with recently enacted budgets. Currently, the STF is on a path to steep and growing deficits – CT2030’s financing and funding package provides solvency and health to the STF, including a 15% reserve fund, without increasing sales and income taxes.
Currently, Connecticut’s infrastructure projects are financed primarily through Special Tax Obligation (STO) bonds. CT2030 diversifies the state’s overall infrastructure financing plan to include:
- Standard STO bonds, at a reduced level
- Loans from the U.S. Department of Transportation’s Build America Bureau. Those loans, which can be accessed by pledging a dedicated funding source like user fees, offer lower interest rates and stronger repayment terms, at no more total cost to the state
- Transportation Infrastructure Finance & Innovation Act (TIFIA) loans finance bridges and tunnels) at rates around 2% for urban projects and below 1% for rural projects
- Railroad Rehabilitation & Improvement Financing (RRIF) loans finance rail infrastructure
- Cash financing of some projects consistent with nationally benchmarked data and best practices
- Added support from Connecticut’s General Fund through General Obligation (GO) bonds consistent with the Governor’s commitment to reducing the state’s bonding levels
CT2030 increases connectivity and replaces or rehabilitates several of our largest and most at-risk bridges and crossings. Rather than delay construction and burden CT taxpayers with the total cost of improvements plus interest, twelve CT 2030 projects will be funded by the implementation of a new and modest truck toll program beginning in 2023. Roughly 50% of those truck tolls will be paid by out-of-state drivers.
The truck tolls provide the U.S. Department of Transportation’s Build America Bureau and our own residents and businesses a guarantee that we can fund our investments without increasing taxes.
Here’s how it works:
- Truck tolls are collected through an overhead electronic, high-speed gantry system—no toll booths, reduced speeds or congestion
- Base truck toll rates range from $1.25-2.50 for Medium Trucks, and $6.40-$12.80 for Heavy Trucks
- Base truck toll rates are competitive nationally and among neighboring states, with an average one-way rate of $8.00 for Heavy Trucks
- Within a 24 hour period, any truck equipped with a transponder will not pay more than one round-trip user fee per gantry
- Trucks without a transponder will be billed by mail and pay a 25% – 50% higher rate than the base truck toll rate
- Revenues go directly into the CT2030 transportation program to pay for the costs of the truck toll bridges and to fund other needed transportation improvements in Connecticut, including eligible transportation improvements within affected municipalities for roads, bridges, transit, etc.
- Federal law and our state constitution prevents all net user fee revenues from being diverted for any other purpose
- Almost 50% of the truck toll revenue is generated by out-of-state vehicles
- 5% of revenues generated from truck tolls will be provided to the hosting municipality for infrastructure improvements
For more detailed information about the user fee projects themselves, please click here.