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| Photo by Randy Heinitz. License here. |
On July 15, 2014, Congress passed an emergency funding
measure for the Highway Trust Fund (HTF), ensuring that current summer
construction projects can continue past the August deadline. This short-term
solution will sustain the HTF for now, but Congress and the White House will
need to work together to pass more secure legislation. The condition of our
nation’s highways is declining rapidly, and the timely upkeep of our roads is
extremely important for our safety and economic security.
Why should we care about the HTF? The HTF was created in
1956 as a way to federally finance the growing system of interstate highways.
While state and local governments are responsible for roads within their
municipal boundaries, interstate highways pass through several state borders.
The HTF was designed to provide funding for these multi-state roadways. The HTF
is mostly funded by gasoline taxes, but the gasoline tax has not been raised
since the 1990s. As vehicles become more efficient, gasoline tax revenues will continue
to decrease precipitously.
A report by the American Society of Civil Engineers states:
“The Congressional Budget Office sees the crisis worsening when considering
newly proposed fuel economy standards that will lower fuel tax revenues by an
additional 21% by 2040. Such a decrease would result in a $57 billion drop in
the Highway Trust Fund between 2012 and 2022.” If funding for the HTF continues
to be sustained by the gasoline tax, the tax needs to be raised to reflect
improving fuel efficiency.
Why is Congress involved with highway maintenance? In
Article I, Section 8 of the Constitution, it says: “The Congress shall have
Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts
and provide for the common Defence and general Welfare of the United States”. Congress
has the power to tax, in part to create and maintain the country’s
infrastructure including roads, bridges, dams, public transportation, energy,
levees, drinking water, railroads, ports and waste management. These public
goods are necessary for our communities to thrive and grow.
Public goods are unique in economics because their value
cannot be calculated by the cost of implementation. Instead, public goods have
value because of what would happen if they were not in place. For example, a
system for cleaning drinking water is valuable because of the diseases we avoid
by investing in good water filtration. If the elements of our infrastructure
are not maintained appropriately, society suffers. The Constitution states that
Congress has a duty to protect the “general Welfare of the United States” and
that includes the maintenance of interstate roads. Poor interstate roads can negatively
affect commerce among states. If goods cannot be shipped safely or quickly
between states, the national economy will deflate.
Some conservative groups argue that states should be left
with control over highway repairs, as they were before the HTF was created. If
funding of road repairs was left to the individual states, however, poorer
states may not be able to fix their roads, making it difficult or even
impossible to bring goods into those states. Because state economies are so
different, the federal government needs to even out the disparities and ensure
that each state has the same opportunity to participate in the national
economy.
Are our roads really that bad? Short answer: yes! The
American Society of Civil Engineers (ASCE) produces an annual report card for
America’s infrastructure. In ASCE’s 2013 report, America’s roads are given a D
grade, meaning our roads are at risk. Specifically, a D grade means “the
infrastructure is in poor to fair condition and mostly below standard, with
many elements approaching the end of their service life.” The report goes on to
state that 32% of American roadways are structurally deficient, which costs
U.S. motorists “$67 billion a year, or $324 per motorist, in additional repairs
and operating costs”. Data about
the safety of our bridges isn’t much better: one in nine American bridges were
considered structurally deficient in 2012. In five states, at least 20% of
bridges are in poor condition; while in the nation’s capitol, a whopping 77% of
bridges are considered either structurally deficient or functionally obsolete.
While the latest bill will sustain the HTF short-term, our
highways still need help. Ideas for a long-term solution for funding highway
maintenance, like raising the gasoline tax, are necessary—not just for our
safety on the road, but for our national economy too. Congress, let’s make sure
we can still get our kicks on Route 66 by securing a bright future for the
Highway Trust Fund!
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