Facing Reality on the Highway Trust Fund

U.S. Transportation Secretary Ray LaHood has written a cogent analysis of the current crisis in transportation funding in the June 18 posting to his official blog. Here’s an excerpt:

“Highways are built, repaired, and maintained with payments from the Highway Trust Fund. The Fund is replenished by revenue collected from motor fuel taxes when Americans buy gas. When Fund spending in a given period is more than the gas tax collected in the same period, the Fund declines. When the decline persists over months or years, the Fund runs out of money and limits the ability of the Federal government to help states.”

You cannot help but be impressed by the clarity of the Secretary’s words: the Highway Trust Fund is broke and the Federal government cannot help the states. Simple, stark, real. With this analysis from the highest level of the Department, one wonders why the Federal government does not get out of the way of states’ efforts to help themselves. Furthermore, it appears that Congress and the administration are unlikely to reach consensus or agreement on a national solution to this problem in the near term. What to do?

In its newly released report called Performance Driven: A New Vision for U.S. Transportation Policy, the Bipartisan Policy Center argues that “Federal policies and funding should assist states and local governments in developing sustainable funding sources including eliminating federal restrictions on road pricing, supporting efforts by states to implement direct user charges and expanding TIFIA credit support.” We agree.

The Bipartisan Policy Center report and those of the two congressional commissions that preceded it – the 2008 Policy and Revenue and Study Commission report and the 2009 Infrastructure Financing Commission report – are sounding a steady drumbeat of calls to reform the current system of funding surface transportation in the United States.

We cannot support a 21st century transportation system using 19th century techniques, mindsets, and policies. Toll operators around the world right now are successfully linking payment for the transportation system with use of the system, sending highly accurate price signals to users that encourage more efficient transportation use decisions. Technologies such as electronic toll collection and open road tolling allow these price signals to be sent in real time without stopping, without waiting, and without barriers. We strongly urge the United States Congress to heed the steady cadence of recommendations aimed at reforming the current system and removing the barriers that stand in the way of funding mechanisms that focus on performance and connect the use of the system with payment for that use.

-- Pat Jones