State Continues to See Declines in the Motor License Fund

The State Department of Revenue recently reported that the Motor License Fund (MLF)* received $161.7 million for the month of June, which is $38.6 million below estimate. Total fiscal year-to-date collections are approximately $2.6 billion, which also is 175.8 million, or 6.4%, 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 $175 million below estimates, approximately 3 cents of the fuel tax has been eroded by decreased revenues.

As the state continues to deal with the lack of a FY 2009-2010 budget, the department of revenue reported that revenues to the State General Fund continue to decline sharply and are now reported to be $3.25 billion, or 11.3 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. 07.02.09