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Highway Funds Losing Money

Posted by: Michael Dudley

22 July 2008 - 8:00am

Yet another unforeseen consequence of high gasoline prices and less driving: the gas tax-funded federal highway trust fund is being depleted, putting states' highway project funding in danger.

"As motorists cut back on their driving and buy more fuel-efficient cars, the government is taking in less money from the federal gasoline tax.

The result: The principal source of funding for highway projects will soon hit a big financial pothole. The federal highway trust fund could be in the red by $3.2 billion or more next year.

The fund, set to finance about $40 billion in transportation projects next year, is increasingly strained. [L]awmakers must figure out whether the 18.4-cent-a-gallon federal gasoline tax, which helped bring in money when fuel-hungry SUVs were hot, is still a viable way to fund transportation projects amid heightened concern about gasoline prices, U.S. dependence on foreign oil and global warming."

Full Story: U.S. highway trust fund veers toward crisis
Source: The Los Angeles Times, July 21, 2008
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agreed!

Submitted by twoaday on Tue, 07/22/2008 - 12:21.

Right now in Wisconsin there are preparing to go forward with a $1.9 Billion freeway expansion despite rising oil prices and a drop in vehicle miles traveled. So here's hoping the funding drys up~

http://urbanmilwaukee.com

If we can't afford to build new highways

Submitted by dhofmann on Tue, 07/22/2008 - 09:53.

because fewer people are driving, then why do we need to build them?

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