According to the Transportation Economic and Revenue Forecast Council, transportation revenues are forecasted to total $8.705 billion in 2025–27, $10.617 billion in 2027–29, and $10.004 billion in 2029–31. Over the three-biennia period, this is $434.6 million less than expected in the February 2026 forecast.

The 2026 supplemental transportation budget had balanced through 2029–31. Today’s reduction to the revenue forecast comes after the Office of Financial Management warned earlier this month that “there will be significant budget shortfalls next biennium in both operating and transportation budgets.”

The biggest contributor to the revenue reduction (compared to the February forecast) is from changes to Climate Commitment Act transfers to the transportation budget. The next biggest contributor is motor vehicle fuel tax collections. Despite the automatic annual 2% increase to the gas tax that was adopted last year, motor vehicle fuel tax revenues are expected to decline by 8.5% from 2026 to 2035, when adjusted for inflation. Total revenues (adjusted for inflation) are expected to increase by 9.3% over that period.

Electric vehicle fees are expected to offset inflation-adjusted losses from the gas tax, but the combined total (adjusted for inflation) is estimated to increase by just 0.7% from 2026 to 2035.