US Secretary LaHood: Road, Bridge Funding Could End Without Action
But he said President Barack Obama's administration remains strongly opposed to an increase in the gasoline tax as a short-term solution.
"There is simply not enough money in the Highway Trust Fund" to meet the nation's transportation needs, LaHood told American Association of State Highway and Transportation Officials at a luncheon in Virginia not far from the nation's capital.
LaHood pointed out that Congress had to pass an emergency $8 billion spending measure in the fall to shore up the fund, and he vowed to "think creatively" to find a solution to keep the fund solvent.
His comments came a day after Rep. John Olver, D-Mass., who as chair of the House Appropriations Transportation Subcommittee oversees the fund, told the gathering the program was in danger of running a deficit by the Sept. 30 end of the fiscal year.
The Highway Trust Fund reimburses states 80% of the costs of a qualifying projects, including road and bridge repairs.
A deficit could force the federal government to cut back on the projects it covers or to extend the amount of time between payments to states. State transportation officials fear that both steps would wreak havoc on states already dealing with fiscal crises.
Transportation projects covered in the new economic stimulus bill would not be affected by a shortfall in the Highway Trust Fund because those projects will receive dollars outside of the fund.
The trust fund, which relies mostly on gasoline-tax receipts, is suffering from declining revenue as Americans continue to cut back on driving at a time when demands on the fund increase.
Some economists and transportation officials have urged the federal government to raise the gasoline tax to increase revenue for the trust fund. But such an idea would be a tough sell to the public, particularly during a recession.
Asked Tuesday whether he would support a gas-tax increase as a short-term solution, LaHood immediately rejected the idea.
"I'm not for it, the administration is not for it," LaHood said, adding, "We're going to think creatively" about a solution.
-By Josh Mitchell, Dow Jones Newswires; 202-862-6637; joshua.mitchell@dowjones.com
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Publié le 24 Février 2009 Copyright © 2009 Dowjones
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