Motor License Fund Revenues Continue to be Below Estimates

The State Department of Revenue recently reported that the Motor License Fund (MLF)* received $186.3 million for the month of May, which is $31.7 million below estimate. Total fiscal year-to-date collections are approximately $2.4 billion, which also is 137.2 million, or 5.4%, below estimates. To provide perspective, PennDOT estimates that for every 1 cent of gasoline tax approximately $62 million in revenue in generated. Therefore, with the MLF $137 million below estimates, slightly more than 2 cents of the fuel tax has been eroded by decreased revenues.

State General Fund revenues continue to decline sharply and are now reported to be $2.8 billion, or 10.9 percent, below estimate.


*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. 06.02.09