Motor License Fund revenues up in August

September 1, 2010

The Commonwealth of Pennsylvania reported slightly better than expected Motor License Fund (MLF)* collections in August.  While this is a welcome and encouraging sign, the MLF is still yielding far less than needed for an adequate highway program.

The state Department of Revenue reported that the MLF received $192.8 million in the month of August, which was $36.8 million above estimate.  Total fiscal year-to-date collections are approximately $437.2 million and that is approximately 9.3% above estimates. 

Last fiscal year’s budget estimate for the Motor License Fund was $2.73 billion and collections for the year were only $2.55 billion, thereby falling short of estimates by $175.8 million.

PennDOT estimates that for every 1 cent of gasoline tax approximately $62 million in revenue in generated. Therefore, with the MLF falling short by $175 million last year, approximately 3 cents of the fuel tax was eroded by decreased revenues.

*The MLF is the constitutionally protected account that is used to fund the commonwealth’s highway program. MLF revenues consist of fuel taxes, license and registration fees, fines and penalties, and misc. sales.

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