Alabama Awards $3 Million for Local Road Projects
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Alabama Gov. Kay Ivey joined state transportation officials to announce $3.11 million has been awarded to cities and counties for infrastructure projects.
The funding was issued through the Annual Grant Program, which was created as part of the Rebuild Alabama Act and is administered by the Alabama Department of Transportation. The program sets aside $10 million a year for local surface transportation projects.
Some 13 projects were selected during this round of funding. The $3.11 million in state funding was matched by $2 million in local government funding, although matching funds are not required for participation in the program.
As part of #RebuildAL’s annual grant program, I’m proud to announce $3.11 million is being awarded to cities & counties across Alabama for various road and bridge projects. Check out the list. #alpolitics https://t.co/4cgj19Y1zk — Governor Kay Ivey (@GovernorKayIvey) June 14, 2021
“When we invest in our roads and bridges, we are investing in our people and our future,” Ivey said. “More and more communities and cities across our state are seeing new road and bridge projects in their areas, and I look forward to that continuing.”
An $250,000 award will support resurfacing efforts on two county roads in Cullman County, which is about 55 miles north of Birmingham. Another grant of $250,000 will assist with resurfacing portions of various streets, totaling 2.01 miles, in Camden. The seat of Wilcox County, Camden is 74 miles southwest of Montgomery.
RELATED: Ivey announces funding to support 27 road and bridge projects
Marion County was awarded $250,000 to resurface 3.88 miles (a figure representing eight roads) within the city limits of Winfield. Located in northwest Alabama, Winfield is within 30 miles from the Mississippi state line.
According to the governor’s office, an additional round of local project funding is expected later this year. Officials anticipate some of the projects will be under contact by the end of 2021. All projects are required to move forward within one year of their respective funding awards.
The Rebuild Alabama Act, signed in March 2019, required ALDOT to establish the Annual Grant Program. The legislation included a fuel tax increase, which is indexed to keep up with the rising cost of rebuilding roads. Effective Sept. 1, 2019, the gasoline and diesel tax rates went up 6 cents per gallon. The tax rate went up 2 cents Oct. 1, 2020, and will go up another 2 cents this Oct. 1.
Rebuild Alabama Act by Transport Topics on Scribd
Alabama’s current motor fuel tax rates are 27 cents per gallon for diesel and 26 cents per gallon for gasoline.
During the first year of the Annual Grant Program, $10.2 million in state funding was awarded to local projects.
“Improving Alabama’s infrastructure remains a top priority of the Ivey administration, and thanks to Rebuild Alabama, we are continually able to put these funds to good use,” Ivey said.
Alabama is one of several states that has enacted fuel tax increases over the past couple of years. In Ohio, legislators approved a 10.5-cent increase to the fuel tax rate. Under Illinois Gov. Jay “J.B.” Pritzker’s Rebuild Illinois plan, the state’s fuel tax rate doubled in 2019, and rates increased again slightly in 2020. Illinois’ current motor fuel tax rates are 46.2 cents per gallon for diesel and 38.7 cents per gallon for gasoline. Rates are scheduled to climb again July 1.
As a way to offset declines in fuel consumption brought on by the COVID-19 pandemic, New Jersey raised the fuel tax 9.3 cents per gallon, bringing its total tax rates to 57.7 cents per gallon for diesel and 50.7 cents per gallon for gasoline.
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