States, localities taking the initiative

By |  August 21, 2015

tax-foterSome states are not waiting around for Congress to get its act together in regards to highway funding. According to a report by the Associated Press (AP), about half of U.S. states have approved measures in the past two years that would “collectively raise billions of dollars through higher fuel taxes, vehicle fees and bonds.”

Paul Trombino III, vice president of the American Association of State Highway & Transportation Officials, says he believes every state is having a conversation about raising revenue for transportation.

The American Road & Transportation Builders Association says federal dollars cover about half of each state’s expenditures for roads and bridges. But, says the AP report, gas-tax money available from the federal Highway Trust Fund declined 3.5 percent during the five-year period ending in 2013, partly because of improved fuel economy.

Local governments are also taking it upon themselves to raise money for transportation infrastructure. AP says a new 4-cent/gallon gas tax took effect in July in Normal, Ill., and a 5-cent increase will begin Jan. 1 in Osceola County, Fla.

At the federal level, all eyes will be on Congress when it returns from August recess.

 

Photo credit: / Foter / CC BY-SA (Author: Author: 401(K) 2013 / photo on Flickr)

About the Author:

Darren Constantino is an editor of Pit & Quarry magazine. He can be reached at dconstantino@northcoastmedia.net.

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