- Dec 3, 2010
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The national Federal Highway Trust Fund, which has expenditures of roughly $50 billion per year, will go broke sometime in 2015.
The fund, which relies on an 18.4 cent per gallon gas tax and has annual expenditures around $50 billion, will no longer be able to cover necessary maintenance to the nation's transportation infrastructure by next year, much less cover any new construction or expansion costs.
The federal gas tax has not been raised since 1993, and it's buying power has been slowly eroding due to inflation, increasing vehicle fuel economy, and a decreasing total of miles driven by citizens.
In order for the tax to have the same buying power as 1994, Congress would need to increase motor fuel taxes by roughly 12 cents per gallon for petrol vehicles and 15 cents per gallon for diesel vehicles. This still would not provide a long-term solution, since an increasing number of vehicles on the nation's roads are now using alternative fuel sources such as Compressed Natural Gas or Electricity, which do not contribute to the national Highway Trust Fund.
The Trust Fund is set to run out at a time when 54 percent of America's roads are rated in poor or mediocre condition, and 1 in 4 bridges is in need of critical repair or is unable to handle today's traffic. Some transportation planners have advocated creating tollways on the interestate system, however federal law has prohibited tolling existing interstate infrastructure since 1956.
Given our inevitable transition away from oil-based fuels, how should we collect money to maintain and build out our future infrastructure?
The fund, which relies on an 18.4 cent per gallon gas tax and has annual expenditures around $50 billion, will no longer be able to cover necessary maintenance to the nation's transportation infrastructure by next year, much less cover any new construction or expansion costs.
The federal gas tax has not been raised since 1993, and it's buying power has been slowly eroding due to inflation, increasing vehicle fuel economy, and a decreasing total of miles driven by citizens.
In order for the tax to have the same buying power as 1994, Congress would need to increase motor fuel taxes by roughly 12 cents per gallon for petrol vehicles and 15 cents per gallon for diesel vehicles. This still would not provide a long-term solution, since an increasing number of vehicles on the nation's roads are now using alternative fuel sources such as Compressed Natural Gas or Electricity, which do not contribute to the national Highway Trust Fund.
The Trust Fund is set to run out at a time when 54 percent of America's roads are rated in poor or mediocre condition, and 1 in 4 bridges is in need of critical repair or is unable to handle today's traffic. Some transportation planners have advocated creating tollways on the interestate system, however federal law has prohibited tolling existing interstate infrastructure since 1956.
Given our inevitable transition away from oil-based fuels, how should we collect money to maintain and build out our future infrastructure?
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