Report shows solving transportation needs could affect taxpayers

(The Center Square) – Tennessee will need billions to meet its transportation needs, which could force lawmakers to consider increases in taxes or user fees.

A draft report presented to the Tennessee Advisory Commission on Intergovernmental Relations shows that state funding is not keeping up with inflation.

Add increased construction costs, and the state may need billions.

“The state needs roughly $1.6 billion in fiscal year 2028 just to maintain its existing infrastructure; $3.6 billion to make improvements as Tennessee continues to grow,” the report said.

State lawmakers included $1.9 billion in one-time funds to the Tennessee Department of Transportation’s budget during their 2026 session. Expenses for the department are projected to grow about 3% annually while revenue from existing sources will increase by less than 1% each year, according to the report.

Higher construction costs drive part of the increased need. Since 2019, inflation has led to a 100% increase in...