NASHVILLE, Tenn. (WKRN) — With Tennessee’s population on the rise and inflation maintaining elevated costs, the state is grappling with funding strategies for upcoming road and bridge developments.

“Our revenue is stagnant and doesn’t meet Tennessee’s growing demands,” remarked Tennessee Department of Transportation Commissioner Will Reid during a meeting with state officials on December 18.

Reid further explained that post-2029, the state will encounter a financial downturn, with expenditure levels reverting to those seen in 2018.

“In contrast, the expenses for constructing roads and infrastructure have surged threefold since the early 2000s,” Reid noted. “Today, our dollars stretch far less, and this reality significantly complicates the choices we make daily at TDOT.”

The Tennessee Road Builders Association has also flagged that the state’s revenue from gas and diesel taxes is diminishing as vehicles become more fuel-efficient. To boost state revenue, the TRBA suggested that Tennessee might consider adjusting the gas tax in line with inflation.

“If we had indexed it back when we did the IMPROVE Act, we’d have about 240 million more dollars on an annual basis and about $840 million more total,” TRBA Executive Vice President Kent Starwalt said. “That would have gone to the state and local governments to fix and repair our roads and bridges.”

Currently, seven out of the eight states surrounding Tennessee have already indexed to inflation, with Missouri being the exception.

“If we don’t find a way to fund our program again, whether it’s through indexing or whether it’s through some other revenue measure, we’re not going to be able to do the things we need to do to not only maintain our current system but to expand and grow the system we have,” Starwalt explained.

Other options to raise state revenue include taxing rideshare trips, electric vehicle charging stations and vehicle registration, among other options.

“The state’s dollars just aren’t going as far as they used to, and so the state either has to cut back on what it’s doing or actually find a way to fill that hole,” Tennessee State Sen. Jeff Yarbro (D-Nashville) said.