Current projections are that the Highway Trust Fund will experience a funding shortfall of several billion dollars in FY 2009, the last year of SAFETEA-LU authorization. Failing to ensure the HTF has sufficient funding to remain solvent could trigger federal funding cuts to the states of approximately 34 percent – nearly $14 billion.  Further industry experts have calculated the funding cuts will result in job losses totaling 380,000.

Revenues into the HTF come from the user fees consumers pay on gasoline.  We pay to use the roads upon which we drive.  The federal highway program provides almost 45 percent of the annual capital investment in U.S. highway and bridge improvements.
The funding shortfall in the HTF only promises to get worse in view of recent data indicating that Americans drove 22 billion fewer miles from November through April than during the same period in 2006-07.

Congressional efforts to fill the projected HTF deficit prior to the Independence Day recess fell short.  Nevertheless, Senate Environment & Public Works Committee Chairman Barbara Boxer (D-Calif.) and ranking Republican James Inhofe (R-Okla.) obtained 71 signatures on a letter to Senate leadership urging action to fix this looming crisis.

The National Governors Association has also called for a quick fix to restore solvency to the HTF.  According to the leaders of the NGA’s Economic Development and Commerce Committee, Gov. Jennifer M. Granholm (D-Mich.) and M. Michael Rounds (R-S.D.), “Our federal-state highway partnership is essential to the success of our nation’s surface transportation system.  We urge you to pass bipartisan legislation to eliminate the impending shortfall as soon as possible so that states can continue planning for and funding critical highway programs.”

Now is the time for the public to let Congress know that it needs to act immediately to ensure the funding solvency of the HTF so that the nation can continue ongoing efforts to improve the  safety of our roads and highways, maintain productivity and economic growth and preserve the way of life American’s enjoy.

This entry was posted on Wednesday, July 2nd, 2008 at 2:40 pm and is filed under Politics .