Delaware Gas Tax Funds Subsidize General Fund

While Congress has subsidized the Highway Trust Fund with over $60 billion since 2008, some states may do the opposite, i.e., transfer funds from their gas tax-filled transportation trust funds to the state's general fund to cover operating expenses.

2 minute read

February 7, 2015, 11:00 AM PST

By Irvin Dawid


"Gov. Jack Markell proposed transferring nearly $40 million for the second year out of Delaware's Transportation Trust Fund to help cover general fund expenses and balance the budget," according to AASHTO Journal.

This practice provides red meat for opponents of raising gas taxes as they often argue that raising gas taxes doesn't necessarily mean that the additional funds will be used for transportation purposes, defeating the argument that gas taxes are user fees

The Journal adds that last year "the governor also proposed raising the gasoline tax by 10 cents a gallon to sharply increase infrastructure spending, but it did not advance in the legislature."

Of course, the funds transfer works both ways, more often toward subsidizing road spending. Last year we noted that Delaware "lawmakers agreed to raise $30 million for paving projects by borrowing money and increasing weekend tolls on a state highway."

Even Markel's ten-cent gas tax increase proposal was based on borrowing as we noted a year ago:

On Jan. 29, 2014 Markell proposed "a 10-cent increase to the state gas tax that he says would generate $50 million per year for the state's Transportation Trust Fund. He is proposing that DelDOT borrow an additional [$50 million a year for five years] to make up the rest," writes Barban.

The Journal didn't indicate the reason for the Transportation Trust Fund transfer, nor even if it would be repaid. According to Delaware online, Markel was open to "suggestions from legislators that a 'lock-box' be used for new transportation funds."

On the federal level, "roughly $70 billion since 2008, including the latest patch" has been transferred by Congressional authorization from the general fund to the Highway Trust Fund, according to The Hill in August, 2014. 

Friday, February 6, 2015 in AASHTO Journal

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

Red and white "Wildfire Evacuation Route" sign on signpost.

Cal Fire Chatbot Fails to Answer Basic Questions

An AI chatbot designed to provide information about wildfires can’t answer questions about evacuation orders, among other problems.

July 10 - The Markup

Protester at Echo Park Lake, Los Angeles holding sign that says "Housing is a human right"

What Happens if Trump Kills Section 8?

The Trump admin aims to slash federal rental aid by nearly half and shift distribution to states. Experts warn this could spike homelessness and destabilize communities nationwide.

July 10 - Shelterforce Magazine

Aerial of rainbow painted crosswalks at large intersection in Castro District, Sna Francisco, California.

Sean Duffy Targets Rainbow Crosswalks in Road Safety Efforts

Despite evidence that colorful crosswalks actually improve intersection safety — and the lack of almost any crosswalks at all on the nation’s most dangerous arterial roads — U.S. Transportation Secretary Duffy is calling on states to remove them.

July 10 - Streetsblog USA

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Home and Land Services Coordinator

Appalachian Highlands Housing Partners

Associate/Senior Planner

Gallatin County Department of Planning & Community Development

Senior Planner

Heyer Gruel & Associates PA