Edition


Vol. 49, No. 1

In this edition

On Feb. 22, 1955, President Dwight D. Eisenhower appeared before a Joint Session of Congress and laid out his vision to build America’s interstate highway system. Sixty years later, the system that Eisenhower built stands in a state of disrepair. And the Highway Trust Fund that was intended to pay for new construction is instead […]

The Impact of Global Youth Populations on U.S. Foreign Policy

In the world’s least developed countries, where the number of people ages 15 to 29 years old is growing at the most rapid rate, the unmet needs of young people are producing negative impacts beyond the borders of their countries. As Washington grapples with issues ranging from trade barriers, homeland security and the threat posed […]

The Ripon Forum: The First 50 Years

The first edition of THE RIPON FORUM was published 50 years ago this past January. To mark the occasion, we thought it would be a good time to look back over the last half-century at some of the individuals and ideas that have been featured in our pages. It’s an impressive list.

THE BRIDGEBUILDER

Shortly after he was named Chairman of the House Transportation and Infrastructure Committee in November 2012, Bill Shuster called his Democratic counterpart on the Committee with a simple request: “Let’s have dinner.” The purpose of the call – and the dinner – was to build a relationship between the two leaders, while setting a tone […]

Restoring Trust in the Highway Trust Fund

We can all relate to sitting in traffic. The frustration, the gridlock – it all seems reminiscent of Washington politics. In this new Congress, however, there is hope for movement and progress when it comes to updating our nation’s roads and highways.

It’s Worse than You Think

America’s transportation infrastructure is falling apart, and we as a nation are falling behind. Yet somehow, with every possible indicator pointing toward the need for increased investment in our crumbling roads, bridges and transit systems, policymakers at all levels of government have been sitting on the sidelines.

Saving the Highway Trust Fund: Is a mileage-based user fee the answer?

The Highway Trust Fund is falling apart. Congress has bailed it out with over $70 billion since 2008 because spending is consistently exceeding revenues. Looking forward, spending plans are 30 percent higher than expected revenues for the highway account and are 50 percent higher for the mass transit account.

The Mileage-Based User Fee: At what cost?

Rarely is a problem best solved by adding layers of complexity to an existing process, particularly a budgetary process. Such is the proposal to supplement or replace the fuel tax with a mileage-based user fee to pull the Federal Highway Trust Fund back from the teetering edge of insolvency.

A New Generation of Transportation Service Delivery

A new generation of highway and transit delivery is arriving, and private infrastructure developers are playing an expanding role. Private companies have designed and constructed highways and transit systems for decades. The new infrastructure developers do much more, including operating and maintaining facilities, and providing financing. Their profits depend on meeting contractual standards of quality […]

Reform Required

The country changes quickly. Congress moves slowly. This presents a classic policy problem where we find ourselves spending federal tax dollars ineffectively because of a policy that has become outdated and in need of reform. In the case of federal transportation spending, the country changed long ago and the reform is overdue.

Ripon Profile of Renee Ellmers

The Representative from North Carolina’s 2nd Congressional District discusses the toughest and most rewarding parts of her job, and her priorities over the next two years. “As Republicans,” she states, “I’d like to see us be more proactive and results-oriented – similar to how nurses operate in their day-to-day.”

The Mileage-Based User Fee: At what cost?

Traffic_along_Highway_401_outside_Scarborough,_Canada

Rarely is a problem best solved by adding layers of complexity to an existing process, particularly a budgetary process. Such is the proposal to supplement or replace the fuel tax with a mileage-based user fee to pull the Federal Highway Trust Fund back from the teetering edge of insolvency.

The real problem with the Trust Fund is how the money is being spent, more so than with how it is being collected from road users. While the nation’s roads and bridges decline further into disrepair, those who constitute the Washington, D.C. political establishment continue to fiddle.

In the 2007 report, “Paying at the Pump: Gasoline Taxes in America,” Jonathan Williams (then of the Tax Foundation) wrote, “. . . current federal highway legislation authorized over 6,000 earmarks from the Highway Trust Fund. Some of these went to legitimate transportation programs, but others were earmarked for items such as the infamous ‘Bridge to Nowhere.’ Today, gasoline tax revenue is spent on everything from public education and museums to graffiti removal and parking garages.”

At about the same time, the Transportation Review Board noted in its “Special Report 285” that, two years earlier, the federal government collected $107 billion in highway user fees, with the majority being generated from gas tax revenue. The TRB reported that only $85 billion of that total was devoted to highway spending.

The Trust Fund allocation process is little better today. Any discussion about the effectiveness of the fuel tax vs. a mileage-based user fee needs to start there, because any revenue collection method will be saddled with the same systemic problem. If only our legislators had the political will and self discipline to limit the incessant earmarking of transportation funds for non-highway projects.

Whether the mileage-based fee is determined by reading odometers or through uploaded tracking information, it does not apportion cost based on the road maintenance caused by specific vehicles that is a hallmark of the fuel tax.

That being said, the fuel tax is the simplest, most equitable method of charging motorists for the maintenance of our highway infrastructure. Heavier, less fuel-efficient vehicles contribute more to road wear and tear than do smaller passenger vehicles and motorcycles, but by virtue of higher fuel consumption their owners also pay more toward the Trust Fund.

A mileage-based user fee requires tracking of actual vehicle miles traveled. Recording the mileage is an added data collection step, either through periodic odometer inspections or by a much more intrusive GPS-based tracking system that monitors the whereabouts of each vehicle at all times. The GPS method opens the door for creative traffic management schemes such as charging drivers more per mile when they are navigating through congested traffic zones. Urban planning by way of social engineering. No thank you.

The loss of motorist privacy by GPS tracking would come with another hefty cost. Paying an estimated $50 to $100 to install the necessary hardware per vehicle for the 250 million registered cars and trucks on U.S. roads translates to a vehicle owner and taxpayer-absorbed cost of nearly $12.5 billion.

Whether the mileage-based fee is determined by reading odometers or through uploaded tracking information, it does not apportion cost based on the road maintenance caused by specific vehicles that is a hallmark of the fuel tax. Instead, the tax per vehicle mile would ostensibly be the same for an 18-wheel tractor-trailer as it would for a motorcycle; all this at the cost of introducing a new revenue collection system (and requisite overhead) to monitor and collect road user fees based on the distance vs. time profile of each vehicle.

Critics of the fuel tax point to electric cars and gas/electric hybrids as not consuming enough fuel to contribute their fair share to the Trust Fund. Through late 2014, 3.8 million plug-in electric and hybrid vehicles have been sold in the U.S. since introduction. That constitutes only 1.5 percent of the nation’s motorized traffic today. These vehicles are not part of the Trust Fund’s solvency issues and likely won’t be for several more years. If need be, owners of electric vehicles can be charged an assessment based on average miles traveled to make their contribution to the Trust Fund more equitable.

Index the federal fuel tax to inflation if you must. (The last adjustment to the per-gallon tax was over 20 years ago.) But do not take the existing and inherently fair method of charging drivers for highway use by vehicle fuel consumption and complicate it with a mileage-based user fee that adds new levels of cost, bureaucracy, and privacy concerns.

Gary Biller serves as President of the National Motorists Association.