Thursday, July 24, 2008

Gas Tax Down

A few days ago, I wrote about local projects taking a hit after a cut in federal clean air funds.

In a related story, the LATimes reported this week that "the principal source of funding for highway projects will soon hit a big financial pothole. The federal highway trust fund could be in the red by $3.2 billion or more next year."

The fund is backed by the federal gasoline tax but the tax is levied by the gallon, not the price, of gas. And with U.S. motorists buying less fuel, that means fewer dollars for transportation projects.

Good thing we aren't relying on aging infrastructure.

From the LATimes: "In the long run, lawmakers must figure out whether the 18.4-cent-a-gallon federal gasoline tax, which helped bring in money when fuel-hungry SUVs were hot, is still a viable way to fund transportation projects amid heightened concern about gasoline prices, U.S. dependence on foreign oil and global warming."

By the way, this is not me urging you to drive more. Just so we're clear.

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