CATC Mobility Headlines

Transportation Secretary Mary Peters announced Friday that the federal highway trust fund will be bankrupt as of October.   Funded by the 18.4 cent/gallon gas tax and 24.4 cent/gallon diesel tax, the fund has been headed in this direction for quite some time, but its faster demise is attributed to Americans’ driving habits in reaction to high gas prices - the number of miles traveled has dropped more than 50 billion over the past eight months.   The DOT has been warning Congress about the dire situation for three years.

Peters said that beginning in October, expenditures will outstrip revenues by about $8 billion.  Peters asked Congress to provide up to $8 billion so that planned highway and bridge projects could continue.   Peters also implored Congress not to pork up highway legislation bill with earmarks - that last transportation bill approved by Congress contained 6,000 earmarks totaling $24 billion.

DOT press release

Highway shortfall may halt highway projects - New York Times

Bush Ends Oppostion to Highway Fund Boost - Wall Street Journal

Highway Trust Fund nearly out of gas - Washington Post

The Governor’s Business Council released a report last month on how best to fund Texas highway needs.  The Austin American-Statesman’s editorial board weighed in on the Council’s recommendation to raise the gasoline tax by declaring it deserving of serious study by the Legislature.

The Statesman board maintains that even if a higher gasoline tax doesn’t eliminate the need for tolls, it could at least reduce the number of tolled roads or allow lower tolls and recommended the legislators approve an increase to make up for the loss of value to inflation.

The public has indicated support for requiring auto manufacturers to build higher mileage cars and trucks, but the auto industry and its labor union supporters have blocked efforts to do so in both Democratic and Republican administrations.
Raising gasoline tax is a good idea, even if we still need toll roads - Austin American-Statesman
November 2006 study by the Governor’s Business Council