Where Will The Transportation Money Come From, Mr. President?

Transportation consultant and analyst Ken Orski looks into the transportation provisions of President Obama's proposed 2012 budget and beyond and notices some major shortfalls - and poses questions to the administration as to how they will be funded.

1 minute read

February 23, 2011, 9:00 AM PST

By Irvin Dawid


As noted here earlier, while many departments saw major decreases in their 2012 budgets, the transportation budget saw an increase of 68%. Writing in Innovation Briefs, Ken Orski wonders where the funds to pay for the increases will come from.

Considering that the federal gas tax has not been increased since 1993, and the Highway Trust Fund has had to be subsidized with $34.5 billion from the general fund in 2008, one must wonder how the President will meet his pledge that "his transportation program will be 'fully paid for' (and) that funding for surface transportation will not increase the deficit."

"The tax revenues generated by the gas tax are estimated to total $36.8 billion in FY 2012 and $230 billion over the next six years according to the latest projections of the Congressional Budget Office. How does the President propose to bridge the $70 billion funding shortfall in FY 2012 and the $326 billion shortfall over the life of the next reauthorization?"

The President has proposed a Passenger Rail account to be added to a new unified Transportation Trust Fund. What will be the source of revenue for the Passenger Rail account ?

Thanks to Ken Orski

Tuesday, February 15, 2011 in InfrastructureUSA

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight