In addition to the ongoing health and economic crisis we face in dealing with Covid-19 and its effects, state and local governments have to consider some of the downstream effects on other services and projects. The Iowa Department of Transportation has already begun to share with local governments some of the impacts that might be felt on state and local road funding.
One major impact that we can observe in real time is the 40% decline in road use. That will cause a decrease in Road Use Tax Fund (RUTF) revenues that local governments rely on for street funding. On the other hand, federal relief or stimulus funds might be made available as part of a future relief or stimulus package later this spring. More details will come in the future. For now, local governments should examine their current road budgets and Capital Improvements Plans while remaining nimble and responsive in rapidly changing fiscal conditions.
You can read more details in this article in the Sioux City Journal.
