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.

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