Declining gas sales hurt road fund
Amanda McClure - The Daily Iowan
Issue date: 8/23/07 Section: Metro
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With declining gas sales meaning fewer federal highway dollars, Iowa officials are considering several options to bolster funding for the state's transportation infrastructure.
One of the biggest problems facing road funding is that residents are gassing up less often, officials said. For the second time in 26 years, Iowa isn't making money from its gas tax, said Dena Gray-Fisher, the director of media and marketing at the Iowa Department of Transportation.
"The cars on the roads are turning to hybrid and electric, so people are spending less money at the pump," Gray-Fisher said.
To remedy this, the state is considering a per-mile tax on drivers in which officials would charge the owner of a vehicle based on miles driven. This would be done using smart odometers that register miles to a GPS device. The GPS system would recognize vehicles driving in and out of state borders, and the owner of the vehicle would receive a bill based on miles driven within state borders.
"With Iowa's transportation revenue declining, Iowa needs to look other ways to make up the difference," said UI Professor Jon Kuhl, who is researching the per-mile tax.
Concerns over funding stem, in part, from statements by national transportation officials that federal transportation funding could be up to $4.3 billion less than had been predicted. The state DOT is projecting it will receive $386.6 million from the Federal Highway Trust Fund for 2009. This would account for 26 percent of Iowa's highway funding program, which is less than officials said they had expected to receive.
Although decreasing funding isn't a shock, it is a concern, said Iowa DOT Director Nancy Richardson.
"The impact of the projected shortfall would be dramatic for Iowa," she said. "It could mean a 38 percent cut in the national federal-aid program. Iowa could simply not meet its transportation demands in the face of such a cut."
The news of the decreasing Highway Trust Fund comes at a time when many states, including Iowa, are starting to take a closer look at their roads and bridges following the collapse of the I-35W bridge in Minneapolis.
One of the biggest problems facing road funding is that residents are gassing up less often, officials said. For the second time in 26 years, Iowa isn't making money from its gas tax, said Dena Gray-Fisher, the director of media and marketing at the Iowa Department of Transportation.
"The cars on the roads are turning to hybrid and electric, so people are spending less money at the pump," Gray-Fisher said.
To remedy this, the state is considering a per-mile tax on drivers in which officials would charge the owner of a vehicle based on miles driven. This would be done using smart odometers that register miles to a GPS device. The GPS system would recognize vehicles driving in and out of state borders, and the owner of the vehicle would receive a bill based on miles driven within state borders.
"With Iowa's transportation revenue declining, Iowa needs to look other ways to make up the difference," said UI Professor Jon Kuhl, who is researching the per-mile tax.
Concerns over funding stem, in part, from statements by national transportation officials that federal transportation funding could be up to $4.3 billion less than had been predicted. The state DOT is projecting it will receive $386.6 million from the Federal Highway Trust Fund for 2009. This would account for 26 percent of Iowa's highway funding program, which is less than officials said they had expected to receive.
Although decreasing funding isn't a shock, it is a concern, said Iowa DOT Director Nancy Richardson.
"The impact of the projected shortfall would be dramatic for Iowa," she said. "It could mean a 38 percent cut in the national federal-aid program. Iowa could simply not meet its transportation demands in the face of such a cut."
The news of the decreasing Highway Trust Fund comes at a time when many states, including Iowa, are starting to take a closer look at their roads and bridges following the collapse of the I-35W bridge in Minneapolis.
Viewing Comments 1 - 2 of 2
Brian '99
posted 8/23/07 @ 10:10 AM CST
You could post this on the ONION, and you wouldn't have to change a word. Unbefreakinglievable! Let alone the outrageous costs that would be involved, do we really want the Government knowing where we're been driving? Call me a Classical Liberal on this one, but no f**king way to this idea!
Andrew
posted 9/21/07 @ 2:04 AM CST
This is the worst idea ever. Government with GPS in cars to track mileage. Just raise the tax on gas! It's more accurate anyway -- bigger vehicles damage the roads more. (Continued…)
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