Pay particular attention to the modifier, federal share. States and municipalities pick up the bulk of road construction and repair projects, often out of general revenues."What I see this administration doing is this — thinking outside the box on how we fund our infrastructure in America," he said.
LaHood said he firmly opposes raising the federal gasoline tax in the current recession.
The program that funds the federal share of highway projects is part of a surface transportation law that expires Sept. 30. Last fall, Congress made an emergency infusion of $8 billion to make up for a shortfall between gas tax revenues and the amount of money promised to states for their projects. The gap between money raised by the gas tax and the cost of maintaining the nation's highway system and expanding it to accommodate population growth is forecast to continue to widen.
Among the reasons for the gap is a switch to more fuel-efficient cars and a decrease in driving that many transportation experts believe is related to the economic downturn. Electric cars and alternative-fuel vehicles that don't use gasoline are expected to start penetrating the market in greater numbers.
Regular readers will understand that objections to passenger rail based on farebox recovery are subject to scrutiny and termination with extreme prejudice on these pages. Perhaps the Secretary's recognition of this point will give pause to those not yet so enlightened.

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