Date Available
5-28-2025
Year of Publication
2025
Document Type
Graduate Capstone Project
Degree Name
Master of Public Administration
College
Graduate School
Department/School/Program
Public Administration
Faculty
Dr. William Hoyt
Committee Member
Dr. Bryan Gibson
Faculty
Dr. Iuliia Shybalkina
Abstract
The rapid rise of electric vehicles (EVs) poses a growing threat to Kentucky’s Municipal Road Aid Fund, which relies heavily on fuel tax revenues. As EV adoption increases and fuel consumption declines, the existing funding model becomes increasingly unsustainable, jeopardizing road maintenance, infrastructure development, and municipal services across the state. Commissioned by the Kentucky League of Cities, this study investigates viable policy solutions to ensure long-term fiscal stability for municipal road funding in an electrifying transportation landscape. Drawing from comparative analyses of peer and neighboring states, the report evaluates alternative funding mechanisms such as road usage charges, EV-specific registration fees, and charging station excise taxes. Through a multi-scenario projection model, the research anticipates revenue impacts under different adoption rates of EVs and fuel-efficient vehicles. While acknowledging political, equity, and administrative challenges, this study provides a framework of adaptable policy tools tailored to Kentucky’s unique economic and geographic realities, such as its mix of rural communities, small towns, and urban centers with varying infrastructure needs. The goal is not to prescribe a single path forward but to empower decision-makers with data-driven strategies that ensure sustainable infrastructure funding, regardless of how EV adoption trends evolve.
Recommended Citation
Bruce, Jacob; Chapman, Tyler; and Girdler, Blake, "Addressing Municipal Road Aid Funding in Kentucky During the Era of Electric Vehicles" (2025). MPA/MPP/MPFM Capstone Projects. 457.
https://uknowledge.uky.edu/mpampp_etds/457