America's Transportation Needs Are Huge. Too Bad Our Funding System Is Broken

A tiny glimpse of the sprawling infrastructure that conservatives disregard 
as an authentic government enterprise.

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America’s transportation needs are huge. Too bad the way we fund them is broken. Lydia DePillis in The Washington Post.

Primary source: Senate must face fiscal reality in pending highway bill. Sen. Bob Corker (R-Tenn.) in The Washington Post.

Until recently, policymakers tried to do everything but raise gas taxes. "One concept backed by Senators Harry Reid and Rand Paul is to use the proceeds from a windfall of taxes on repatriated corporate profits. An even less likely idea from House Speaker John Boehner is to cut back on mail delivery and put the savings into the trust fund. Both ideas have drawbacks, and they fight the founding principle of the Highway Trust Fund, which is that construction and maintenance of highways and bridges should be paid for by the people who use them....Another alternative, of course, is just to spend less money on fixing highways — let the potholes get a little bigger and the bridges a little rustier. But the American people don’t seem to like that option." Peter Coy in Bloomberg Businessweek.

Gas-tax hikes are the simplest solution, but an unpopular one. "It's widely viewed as the simplest fix to solve the potential crisis. But in a midterm-election year, no one has even floated the possibility until now. Tax hikes in general are broadly unpopular, and a gas-tax increase would hit a huge number of Americans where it would hurt most. But Murphy said the tough choice would pay dividends for the fund in the long run, and Corker said it was an 'embarrassment' that no one has spoke about this potential solution already....It's not yet clear what kind of support the plan will have in the Senate — where one-third of members are facing re-election bids — or in the House. But it has picked up support from groups like the Chamber of Commerce and AAA." Brett Logiurato in Business Insider.

Poll: Majority of riders willing to endure gas-tax hike. Keith Laing in The Hill.

Can Congress approve a long-term fix in time? If not, senators seek a six-month patch. "Senate Finance Committee members...including committee Chairman Ron Wyden, told reporters today that lawmakers in both parties want to make sure the trust can meet its obligations through the end of this year as Congress pursues a longer-term measure that includes broader changes to transportation programs. Wyden, an Oregon Democrat, and other lawmakers said there is still no consensus yet on how to finance the so-called 'patch.'" Laura Litvan in Bloomberg.

The states have wildly varying ideas in mind in case the trust fund runs out. "The issue is a hot topic in Missouri....The state's Republican-led Legislature recently passed a resolution to ask voters for a sales-tax increase....Several other states, including New Hampshire, have recently passed fuel-tax increases, and others such as Michigan are debating ways to boost funding for road and transit projects....Vermont has freed up $15 million to cover a potential federal shortfall, but that would buy it only eight or nine weeks before it would have to consider curbing projects....Georgia will use about $130 million in state bonds to support...projects but will stop contracting out some new ones in July without a federal aid solution." Jon Kamp and Kristina Peterson in The Wall Street Journal.

Another looming transportation-funding problem: Airports. "Airports and airlines disagreed Wednesday at a House hearing about whether to raise fees on tickets to pay for airport construction projects. The fees, called passenger-facility charges, raise $2.8 billion each year to pay for projects such as runway improvements or gate expansions, but airport executives say it isn't enough. The fees are capped at $4.50 per leg or $18 per round trip and were last raised in 2000. The fees are added to a passenger's ticket, depending on the airports they use. Airport executives told the House Transportation subcommittee on aviation that the money hasn't kept pace with the growth in passengers, so they propose to raise the cap to $8.50 per leg." Bart Jansen in USA Today.

USA TODAY: Raise the gas tax. "As the summer driving season begins, motorists are already navigating overcrowded, pothole-pocked highways and deteriorating bridges. Soon, thanks to a gridlocked Congress, drivers might also contend with abandoned construction sites. The federal Highway Trust Fund is just weeks from running out of money, which would halt a number of road and transit improvement projects. There's talk in Washington of various quick fixes. But no consideration is being given to providing the trust fund with the stable income source it so desperately needs." Editorial Board.