Gov. Bill Lee's administration to ask Tennessee lawmakers for approval on toll lane study

Adam Friedman, Nashville Tennessean
·2 min read
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Tennessee's highway repair needs vastly exceed the revenue the state is generating for repairs, prompting transportation commissioner Butch Eley to ask lawmakers if his department can look into toll lanes.

Eley said at a news conference Wednesday that Tennessee had three solutions to increase highway funding without raising fuel taxes or taking on new debt: the state could look into toll lanes, raise the fee on electric vehicles and implement cost savings into the department construction process.

"All we're doing here is asking for the ability to look at this as an option," Eley said. "Right now, we can't do what other states around the country are doing as it relates to public-private partnerships."

High-occupancy toll lanes, or express lanes, have become more and more common around the country to generate revenue and relieve states of maintaining certain roads by easing congestion. They are often managed by private companies. These type of toll lanes exist around cities like Atlanta, Dallas, Los Angeles and Washington, D.C.

Traffic on the highway moves slowly down the road while cars enter the highway at a trickle with the ramp from Rossview Road ramp at Exit 8 on I-24 South in Clarksville, Tenn., on Friday, Sept. 17, 2021.
Traffic on the highway moves slowly down the road while cars enter the highway at a trickle with the ramp from Rossview Road ramp at Exit 8 on I-24 South in Clarksville, Tenn., on Friday, Sept. 17, 2021.

Wednesday's news conference came as Gov. Bill Lee named infrastructure improvement as one of his top priorities in his second term.

More:Analysis: How Tennessee Gov. Bill Lee won and what's ahead for his second term

Lee was not in attendance, but Eley has been one of the governor's top advisers serving as head of the Department of Finance and Administration for much Lee's first term. Eley, who also holds the title of deputy governor, only recently switched to lead TDOT.

Tennessee funds highway repairs through a 26-cent per gallon tax on gasoline and a 27-cent tax on diesel fuel approved by lawmakers in 2017 as part of the Improve Act, the first gas-tax increase since 1989. The tax generates roughly $500 million per year and is unlikely to grow in revenue as cars continue to become more efficient and people switch to electric vehicles.

Studies conducted by TDOT and the Tennessee Advisory Commission on Intergovernmental Relations show the state has anywhere from $26 billion to $35 billion in road infrastructure needs over the next 15 to 20 years. The main concern is to address growing traffic congestion.

"It doesn't take long to realize we have a little bit of a math problem," Eley said.

Despite this growing gap between revenue and expenses, Eley said the governor did not want to increase the gasoline tax or take on new debt.

Tennessee is one of the six states with a pay-as-go model, which prevents lawmakers from borrowing money for road projects.

The state is also uninterested in building long connected toll roads between cities, Eley said.

"The governor does not believe that toll roads from point A to point B where the entire roadway is tolled is a good solution," Eley said.

Adam Friedman is The Tennessean's state government and politics reporter. Reach him by email at afriedman@tennessean.com.

This article originally appeared on Nashville Tennessean: Lee administration to ask lawmakers for approval on toll lane study