Opinion: Gas Conservation Threatens Road Funding

• SEE ALSO: NO NEW GASOLINE-POWERED VEHICLES IN THE U.S. BY 2014...Can It Be Done?

But First Snide's Remarks:For years I have been telling anyone who would listen that the two biggest beneficiaries of high gas prices were the oil companies and us with fuel-taxes funding our various governments

It’s time to design and implement a system that funds our highway and transportation needs through a use tax of sorts, that is paid out every year at a rate that will generate the funds that this country needs to maintain and improve its infrastructure, and which by the way will cost the consumer much less than the combination of fuel costs and taxes then it does now. What do you think? msnide@theautochannel.com

Washington DC July 24, 2008; The AIADA newsletter reported that the U.S. House passed legislation that would steer $8 billion to highway projects next year, in a prelude to a broader debate over how much to invest in roads, bridges, and other transportation infrastructure.

The bill passed Wednesday is essentially a stop-gap measure designed to plug a gap between fuel-tax revenue flowing into the federal Highway Trust Fund and funding promises Congress has made to the states.

But it also spotlights a long-term problem confronting policymakers as consumers drive less and use more fuel-efficient vehicles. According to the Wall Street Journal, conservation means less gas-tax revenue is going into the Highway Trust Fund, which Congress taps every year to send transportation funding back to the states.

Current estimates indicate the trust fund will take in at least $3 billion less than Congress planned to spend next year. "The mechanism for financing highway and transit projects is obsolete," said Rep. John Mica (R-Fla.). "In the long term, Congress must address this problem...in the short term, however, our only option is to pass this legislation and make sure the Highway Trust Fund remains sound and we avoid a transportation crisis.".