Montana DOT, The Future of Transportation Funding in Montana
High Street, in partnership with the Western Transportation Institute (WTI), undertook a research project for the Montana Department of Transportation (MDT) to address challenges to transportation funding caused by the increase in electric vehicles (EVs) and more fuel-efficient vehicles. High Street analyzed current revenue structures in Montana and developed long-term forecasts for motor fuel taxes and Gross Vehicle Weight (GVW) fees, considering factors such as EV adoption, commercial vehicle use, and changes in fuel efficiency. A key deliverable of the project was an interactive decision-support tool that would allow MDT and stakeholders to simulate different revenue scenarios and funding mechanisms.
High Street’s work included several key tasks. They evaluated current motor fuel and GVW revenue, along with trends in EV adoption and fuel economy, synthesizing this data into a model of historical transportation revenue in Montana. They then forecasted motor fuel tax and GVW fee receipts, comparing Montana’s projections to national trends. The team also identified and evaluated alternative funding mechanisms. This task included developing an implementation and trade-off tool, evaluating costs and flaws of different options, creating a cost-benefit report, and analyzing the projected decline in revenue if no action was taken.
