As Kentuckians continue to enjoy low gas prices, the state’s road fund has suffered because of lost revenue from the motor fuels tax.
Officials predict the state road fund will fall below $100 million next August. The fund, which finances state highway maintenance and construction projects, has been suffering revenue shortfalls, partly due to poor returns from the state gas tax.
Starting in July, the Transportation Cabinet froze $145 million in highway construction projects for one year in an effort to rebuild the road fund.
Over the 2016 fiscal year, which ended June 30th, the gas tax brought in $100.2 million less than in the previous year. Officials predict revenues into the road fund will continue to decline this year, with an estimated $3 million decrease.
