States Worry About Dwindling Road Funds

Source: Stephen C. Fehr, Stateline.org, July 23, 2008

The two main sources of state transportation money are falling precipitously this summer as Americans cut back on driving, threatening to delay or halt crucial work on roads, rails and bridges and breeding an election-year issue for Congress and the presidential candidates.

Both the federal Highway Trust Fund and state road funds rely on federal and state taxes collected on each gallon of gasoline, but revenues are dropping because people are not buying as much gas now that prices top $4 a gallon. The slippage exacerbates a looming crisis with the $40 billion federal highway fund, already projected to run out of money before the start of the next budget year Oct. 1.

Leave a Reply