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Funds for Highways Plummet As Drivers Cut Gasoline Use

Wall Street Journal Original article ›

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A report of the Transportation Department shows that over the past 8 months Americans have reduced their driving by more than 40 billion miles. Higer gasoline prices led to Americans driving less. In April 2008 Americans drove 1.8% less miles than the year earlier April, and in May this increased to 3.7% fewer miles than a year earlier. And this trend is not going to change or go back as as happened previously. So its a permanent feature of the new landscape according to experts. Everythng the kinds of cars people drive (smaller and fuel efficient), where people live (closer to work, and in closer proximity), the way they drive (less and use bicycles and small Smart vehicles also), and the way they use alternative transport ( frequent use of mass transit and better quality of mass transit with new investment), all tis is about to change permanently. The way the USA funds road and bridge repair and maintenance and new road and bridge construction is through gasoline taxes at the federal level (18.4 cents a gallon) and state taxes. With reduced driving there is less money available to fund these road projects. But this happens at a bad time because existing road and bridge infrastructure is crumbling. About 25% of the country's bridges are in bad shape or obsolete or structurally deficient and one in seven miles of roads are in bad shape according to the National Surface Transportation Policy and Revenue Study Commission, and most people can see this when they drive around intheir cities. And big increases in the cost of asphalt and other construction materials are only compounding the problem. The Commission says it will cost $225 billion a year to tackle national transportation infrastructure needs. Worse still only 40% of this is getting funded. So a huge gap in funding looms and Congress is being pushed to come up with funding solutions as states struggle to deal with the problem.

Cutbacks at the state and local level and tax increases to offset much of the Stimulus impact in the USA.

07/28/2008

Much of the Stimulus impact may be eroded by the cutbacks at state and local levels.

Grouped Articles

Funds for Highways Plummet As Drivers Cut Gasoline Use

Wall Street Journal 07/28/2008

Facing Deficits, States Get Out Sharper Knives

New York Times 11/17/2008

Gov. Paterson to Propose $4 Billion in Taxes and Fees to Close Deficit

New York Times 12/15/2008

States Squeeze Cities, Spreading the Economic Pain

Wall Street Journal 12/18/2008

Jon S. Corzine - A Bold Stimulus Package -- $1 Trillion Bold -- Is Needed

Washington Post 12/24/2008

Budget Woes Hit Mass Transit as Tax Revenue Falls

Wall Street Journal 03/20/2009


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