In exactly fifteen days, the federal fund that provides funding for the nation’s highways, roads and bridges will effectively run out of money. And we’re sorry to tell you this isn’t just a bad case of déjà vu.
We are now witnessing yet another last minute effort to do something that it seems so obvious needs to be done. The fact is, if you’re car or truck gets swallowed up by a giant pothole, go ahead and blame Washington.
After a constant stream of short-term fixes, lawmakers now need to come up with $100 billion if they want to ensure infrastructure needs are met for another six years. But will they?
Where’s The Movement?
Ever since the Highway Trust Fund first ran out of money in 2009, Congress has been engaging in a near constant barrage of last minute, short-term extensions. The total number amounts to 33 over six years.
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The biggest problem with the highway fund is that there’s not enough money coming into support all of the infrastructure projects on the drawing boards. A full 60 percent of the fund is supported by the 18.4 cents-per-gallon fuel tax, which has remained static since 1993. The remaining funding gap sits at $16 billion.
Despite these numbers, raising the gas tax appears to be a non-starter in Congress. In lieu of federal action, 16 states have decided to raise their own gas tax. Highlighting how bipartisan this issue is, eight of the states raising taxes are Republican controlled. After all, the money has to come from somewhere.
Can States Do It?
Unfortunately, most of the states receive more than half of their infrastructure funding from the government. The uncertainty in Washington has led a number of states to delay necessary projects and hold back on infrastructure planning.
In an attempt to get some movement on the issue, Transportation Secretary Anthony Foxx said earlier in the week that the Federal Highway Administration would have to furlough workers. He went on to say that states will “cease having access to personnel who assist with all highway projects.”
This lack of access won’t just be limited to processing payments. States will also find resources for project approvals, environmental actions, permitting, authorizations, technical assistance, and modifications to existing projects may all be affected.
What’s Happening Now?
In what may be a surprise to no one, the House passed a five-month extension on Wednesday. The Republican-backed bill would approve another $8 billion for the Highway Trust Fund, kicking the can to mid-December.
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To complicate matters, Senate Republicans have no plans of taking up that bill, but instead want to try for an even longer extension. Republican Senators Orrin Hatch of Utah and James Inhofe of Oklahoma have both been pushing for a multiyear highway bill this year.
All this as the clock winds down. Can our nation’s roads survive the uncertainty?
How Bad Is It?
Every time Washington fails to find a long term solution to pay for the nation’s ailing infrastructure, the situation gets worse. Twenty-two states report over half their roads being in poor or mediocre condition. Another quarter come close to the half-way mark.
According to the American Society of Civil Engineers, one in nine bridges in the country are considered “structurally deficient.” So many of the nation’s major highways are so congested that it costs the country over $100 billion a year in wasted fuel and time.
In what may be a major symbol of Washington’s disconnect, bridges in the nation’s capital are deteriorating faster than the national average. A shocking 77 percent of the bridges in Washington D.C. are either structurally questionable or functionally obsolete.
What’s Next?
The American Trucking Associations, along with other trade groups, has lobbied heavily for an increase in the gas tax. Unfortunately, Congress does not share the same view. There is very little appetite in either party for raising the gas tax.
Senator Chuck Schumer of New York himself said that “while there are some individual members who support a gas tax, the vast majority of both parties do not.”
The proposed Senate bill would annually inject $43 billion into the fund, but there is no funding mechanism built into it to make up for the missing billions from a static gas tax.
So, with our country’s roads, highways and bridges practically crumbling beneath our wheels, when will Congress decide action must be taken? Don’t hold your breath.
from Quick Transport Solutions Trucking Blog http://ift.tt/1TlNUiR
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