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

Use Code 25for25 at checkout for 25% off an annual plan!

Redlining map of Oakland and Berkeley.

Rethinking Redlining

For decades we have blamed 100-year-old maps for the patterns of spatial racial inequity that persist in American cities today. An esteemed researcher says: we’ve got it all wrong.

May 15, 2025 - Alan Mallach

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.

May 14, 2025 - Diana Ionescu

Rendering of California High-Speed Rail station with bullet train.

California High-Speed Rail's Plan to Right Itself

The railroad's new CEO thinks he can get the project back on track. The stars will need to align this summer.

May 19, 2025 - Benjamin Schneider

People with bikes ordering at food trucks outdoors.

Raleigh Launches Greenway Food Truck Pilot to Enhance Park Experiences

Raleigh’s new Greenway Food Truck Pilot Program brings local food vendors to popular greenway locations to enhance park experiences, support small businesses, and encourage community use of public spaces.

4 seconds ago - City of Raleigh

"Units for sale - contact your local realtor" sign in front of homes.

‘Displaced By Design:’ Report Spotlights Gentrification in Black Neighborhoods

A new report finds that roughly 15 percent of U.S. neighborhoods have been impacted by housing cost increases and displacement.

May 19 - Next City

Turquoise blue Pyramid Lake near Reno, Nevada.

Nevada and Utah Groups Oppose Public Land Sell-Off Plan

A set of last-minute amendments to the budget reconciliation bill open up over half a million acres of federally managed land to sales.

May 19 - Inside Climate News

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.