Increase Funding or Raise Taxes?

Transit advocates may be louder than highway backers for the first time in discussions about the next authorization bill, but highway supporters warn less highway funding means less gasoline taxes.

"The federal Highway Trust Fund now apportions about 81 percent toward roads and bridges and 19 percent to mass transit. Some lawmakers and transit advocates are mounting a significant campaign to level the funding distribution, which has highway supporters warning that such a funding shift could upset sensitive plans - including a possible increase in the federal gasoline tax - to boost trust fund receipts.

The revenue from gasoline and other motor fuel taxes has not kept pace with transportation spending, as vehicles become more fuel-efficient and the recession has reduced some highway travel. It is largely accepted that without a tax increase transportation projects will be dramatically cut back. Most transportation groups support raising the gasoline tax."

Full Story: Push for More Transit Funding Could Spark Transportation Spending Battle

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