(Stock photo by Owaki/Kulla via Getty Images)
Recent revisions to the state’s revenue forecast confirm Maine’s highway fund and general fund face structural deficits, albeit not as large as previously expected. Some legislators have tried to claim this is the result of a “spending problem,” but that ignores an important side of the story — the state’s failure to raise enough revenue to keep up with rising costs.
The shortfall in the highway fund is emblematic of this issue. Under the state constitution, certain revenues, including from vehicle registration fees, driver’s license fees, as well as fuel taxes, are only allowed to be spent on the construction and maintenance of highways and bridges. This funding forms the basis of the state’s highway fund. Last year, approximately 40% of the fund’s revenue came from fuel taxes and another 20% came from registration and license fees…