Road Repair/Construction Underfunded : User Fees Fall Short

If all funding for roads and other transportation related projects came from users, and was protected for that use and no other, how would the politician steal from the transportation budget for pet projects?

Wisconsin's former governor, 'Diamond' Jim Doyle, democrat, used the transportation monies as a slush fund, when ever he need funds for reelection buy-outs, the teachers unions in 2006 for example to the tune of 540 million as a promise of increased wages, he just dipped into this fund. He promised he would pay it back over the next for years after he won the election, with other revenues which he of course didn't. Probably he had to borrow the money having the taxpayers foot the interest bill which in reality is the financing Doyle's reelection by the taxpayers. Clever don't you think?

To establish good policy on transportation funding it will require iron clad restrictions as to how the monies will be spent with no exceptions. Remember the 'lock box' for Social Security?

 I believe this will never happen. Until the will to do the right thing when it comes to money and politics has not developed to the point where the responsibility for results within the state or federal government can be directed to specific individuals, nothing will be accomplished. The generational theft and misappropriations will continue unabated.

Although under the new governor of Wisconsin, Scott Walker, things seem to be tracking better then under past governors. Maybe there's hope for the future. Time will tell all.

Only Half of State Road Spending Is Covered by Gas Taxes and User Fees
Source: Joseph Henchman, "Gasoline Taxes and User Fees Pay for Only Half of State & Local Road Spending," Tax Foundation, January 3, 2014.

January 10, 2014

The majority of transportation funding should come from user fees and taxes, says Joseph Henchman, vice president of legal and state projects at the Tax Foundation.

Many state legislators are trying to figure out how to pay for transportation expenses. Oregon has started using a "vehicle mileage tax," while Virginia and Massachusetts raised several taxes, all for the purposes of funding transportation.

Most funding should come from user fees (such as tolls) and user taxes (such as a gasoline or vehicle license tax), so as to ensure that those who are using the roads are bearing the largest part of the cost. If funding is taken out of general revenue funds the roads appear to be free, which can lead to overuse or congestion.

• In 2011, highway user fees and taxes made up only 50.4 percent of state and local expenses on roads.
• State and local governments spent $153.0 billion on highway, road and street expenses, but raised only $77.1 billion in user fees and user taxes ($12.7 billion in tolls and user fees, $41.2 billion in fuel taxes, and $23.2 billion in vehicle license taxes).
• The rest of the funding came from general state and local revenues as well as $46 billion in federal aid.

Delaware, Hawaii, Florida and California raise at least two-thirds of their transportation spending from user fees and taxes, while in Alaska, South Dakota, Wyoming and Louisiana, most spending comes from general revenue funds.

Increasing tolls and gas taxes may not be popular, but pulling transportation funding from general revenue funds is unfair to non-users and creates pressure to increase income and sales taxes.