For Immediate Release
(WASHINGTON, D.C.) - The 4.3 cents-per-gallon federal motor fuels tax hike enacted in 1993 is now generating $6.3 billion a year to the U.S. Treasury. Unlike the rest of the federal gas and diesel excise, however, that money is not being used to finance state and local highway and bridge improvements.
An analysis released by the Transportation Construction Coalition (TCC) shows that decision is costing states from $27 million to $561 million per year in lost highway user fee funding. The analysis, prepared by the Dr. William Buechner, director of economics and research for the American Road & Transportation Builders Association, looked at how adding the 4.3 cent gas tax revenue stream to the federal highway program would affect state highway funding under the existing program structure and funding formulas.
It shows that if the money was redirected to the Highway Trust Fund and apportioned to the states, nearly half would receive more than $100 million per year in additional federal funds for road improvements. California would receive the most, $561 million. Puerto Rico would receive $27 million.
The TCC is urging Congress to redirect revenue from the 4.3 cent tax to the trust fund as part of this year’s reauthorization of the federal surface transportation program. The group says such action could play a key role in resolving concerns many states have raised about federal highway funding formulas.
It would also, the group says, restore the user fee concept that has financed the federal-aid highway program since 1956. The Transportation Construction Coalition, which includes 24 national associations and labor unions, is distributing the analysis to all Congressional offices.
The federal surface transportation program must be reauthorized by Congress by October 1, 1997, or all federal aid to the states for highway improvements will cease.
The
Transportation Construction Coalition