Fuel-Efficient Cars Dent States' Road Budgets

By ROBERT GUY MATTHEWS

April 25, 2007; Page B1

 

Cars and trucks are getting more fuel-efficient, and that's good news for drivers. But it's a headache for state highway officials, who depend on gasoline taxes to build and maintain roads.

 

The Federal Highway Administration estimates that by 2009 the tax receipts that make up most of the federal highway trust fund will be $21 billion shy of what's needed just to maintain existing roads, much less build new roads or add capacity. Trying to compensate for highway-budget shortfalls, a handful of states are exploring other, potentially more lucrative ways to raise highway money...

 

http://online.wsj.com/public/resources/images/MK-AJ613_ROADS_20070424204502.gif

 

http://online.wsj.com/public/resources/images/MK-AJ629_ROADSj_20070424192032.gif

Too bad the WJS spent so much of the article on Oregon's mileage-based experiment. I would have liked them to discuss more of the root causes of the problem, and that the Congressionally authorized the creation of a commission to study the problem and recommend solutions (here's two websites for the same thing):

 

http://www.transportationfortomorrow.org/

http://www.surfacecommission.gov/Statute1909.htm

That graph shows that fuel economy basically leveled out in 1987. Wouldn't the problems have happened in the early '80s? Engines are getting more efficient; too bad the actual cars, trucks and SUVs aren't. Cars aren't using less gas. They keep making them heavier and taller, let alone the continued popularity of trucks, minivans and SUVs.

I saw a presentation by the American Association of State Highway & Transportation Officials in the past year that showed the impact of increased fuel efficiency, alternative fuels and the like have had a nearly meaningless impact on gas tax revenues. Actual federal gas tax rates haven't increased since 1993, and in the last few years vehicle-miles traveled (and thus the gas tax revenues from them) have not grown as fast as the costs of building and mainting roads. Another big problem is the increase in the number of transportation project earmarks inserted into the last 6-year federal surface transportation funding reauthorization (SAFETEA-LU).

 

So the big deficit due to hit the Federal Highway Trust Fund within the next few years is due to a number of factors, but the WSJ picked the least important one on which to focus its article. Nor did it say a thing about the current federal effort (National Surface Transportation Policy and Revenue Study Commission) underway to research and recommend solutions to the problem.

 

Not very informative journalism....