J00J00 Maryland Transportation Authority Fiscal Year 2026 Operating Budget Response to Department of Legislative Services Analysis
DLS Budget Analysis Issues
1. MDTA Financial Outlook (Page 22) MDTA should comment on the timing of potential toll increases and how they would be implemented. MDOT Response: A need for a toll increase has been forecasted since prior to the pandemic. Reductions in revenue caused by the pandemic, coupled with inflationary pressures on operating and capital expenses, pulled the toll increase into fiscal year 2029. The toll increase was pulled forward into fiscal year 2028 largely due to the reduction in toll revenue associated with the Key Bridge collapse. The toll increase process must begin with sufficient time to accomplish the requirements in state law, Transportation Article 4-312, and to allow year end net revenue compared to annual debt service to meet or exceed a factor of 2-times as required by legal covenant (known as 2.0x Debt Service Coverage). Based the current forecast approved by the MDTA Board in November
2024, the toll setting process would likely begin in early calendar year 2027. The toll setting process is illustrated in the flow chart on the following page.
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