GasPumpCostumeWe’ve established the infrastructure crisis, so now it’s time to look at WHY this has happened.

Where does the money to build and fix roads come from?  Since 1956, U.S. roadway infrastructure projects have been largely funded by the Highway Trust Fund (HTF).  Money is pooled into the HTF via an 18.4 cents per gallon gasoline tax (24.4 cents on diesel).  Other sources of income include taxes on tires, and the sale of heavy trucks and trailers.   Once collected, these revenues are placed in a dedicated account, The Highway Trust Fund.  Monies from the HTF are then re-distributed to individual states according to a formula based upon linear highway miles, population, and the amount of gas tax revenues originally contributed by the state to the HTF. ¥

This is all fine and dandy, but is it sustainable?  The answer has proven to be “No.”

In recent years, a confluence of factors has led to an emergency-level shortfall in the Highway Trust Fund.  These factors, while not in and of themselves bad, are individually daunting and collectively catastrophic to our antiquated funding mechanisms.  They include:

  • high gas prices which have forced motorists to drive less,
  • popularity of cars that get better gas mileage,
  • the emergence of alternative fuels,
  • the federal portion of the gasoline tax has not changed since 1993
  • the rising expense of road maintenance, materials and construction

It is difficult to argue that this 50-year-old funding mechanism anchored in a time of cheap land, labor and materials is adequate to satisfy the needs of a modern nation.   In my next post, I’ll address a number of alternative proposals which are swirling about for replacing/upgrading our transportation infrastructure funding mechanisms.

(¥ Wow…does anyone else see how this promotes an SUV culture and ever more asphalt?)

Special Thanks to Contributing Researcher & Writer Crystal Pendergrass, civil engineer/jobseeker, and to Contributing Editor, Donald Galligan, AICP, Transportation Planner all around nice guy.