Road Fund Assessment KYSPR 12-449

OBJECTIVES: The primalY research question can be simply stated as: Is tlte Kentucky Road Fund a viable revenue mecltanismfor tlte maintenance mId improvement of Kentucky roads currently and into tlte near future? Several issues surround the primary research question, including the variables that affect the portion of the road fund revenue stream that is based upon the sales of motor fl1el. These include: 1) the state of the economy (personal income); 2) modal transpDltation choice and vehicle efficiency (including power source substitution such as fi'Dln the intemal combustion engine to the electric motor); and 3) transpoltation fuel (gasoline and diesel) prices. This research aims to provide an understanding of the current and future viability (traditionally measured by stability, equity and adequacy) of Kentucky's motor fuel tax contribution to the Road Fund in light of a changing environment. It will examine the sensitivity of all sources of the Road Fund's revenue stream to selected factors (key variables) affecting current and future vitality.