Transportation legislation being pushed in Congress by Heritage Action and the Club for Growth could force states to increase their gasoline taxes, road-building groups said. For example an 11.5 cents-per-gallon increase could occur in Florida’s gas tax by 2020 in order to maintain the state’s current annual investment in highway, bridge and public transportation improvements, an analysis of federal and state data shows. The analysis was commissioned by the Transportation Construction Coalition (TCC).
If the proposal were enacted, Florida’s only other options, according to the analysis, would be to raise other taxes, redirect an equivalent amount of revenue from other state programs, or slash the state’s road, bridge and transit improvement program.
The analysis notes that, on average from 2010 to 2012, Florida relied on federal funding for 39 percent of its annual capital investment in highway and bridge improvements.
The legislation, the “Transportation Empowerment Act,” (TEA) would, over five years, lower the federal gas tax from 18.4 cents-per-gallon to 3.7 cents, and the federal diesel motor fuel tax from 24.3 cents-per-gallon to 5 cents. As a result, with the diminished federal revenue stream, every state would be left on its own to replace its share of the federal funding that would no longer be available.
Conservative activist groups contend the lower federal fuels tax rates—which would generate about $6 billion per year—would be enough to rebuild and maintain the 60 year-old, 48,000-mile Interstate Highway System, the TCC and the American Road & Transportation Builders Association said in a March 25 statement.
The U.S. Department of Transportation’s 2013 biennial report to the Congress on the nation’s highway and bridge capital needs, however, says just maintaining current Interstate System physical conditions and performance requires almost $19 billion per year. The annual capital investment necessary to optimize the System’s condition, performance and safety, the report says, is $35 billion.
The federal investment in state highway and bridge programs during FY 2015—which in addition to providing support for interstate highways also assists state investments in more than 120,000 miles of other major roads that connect the Interstate to the nation’s major military facilities, airports, ports, rail, truck and pipeline terminals and other strategic transport facilities—is just over $40 billion.
Sen. Marco Rubio (R-Fla.) was a co-sponsor of the legislation in the last session of Congress.
“The Transportation Empowerment Act and the rationale these groups offer for it show a gross misunderstanding of how the federal-state partnership to provide a core function of government—providing citizens and U.S. businesses safe and efficient mobility through transportation infrastructure—works,” Pete Ruane, TCC co-chair and president and CEO of the American Road & Transportation Builders Association, said. “It would be, at best, irresponsible for a Member of Congress to put their name on this legislation unless they first commit to leading the charge in their state to raise their gas tax, or other state taxes, or cut other specific state programs to fill the funding gap this legislation would create.”
“All this legislation would do is force drivers to pay more at the pump without delivering any improvements to the quality of safety of the roads and bridges they use,” said Stephen E. Sandherr, chief executive officer of the Associated General Contractors of America and the Co-Chair of the TCC. “The Act may sound tempting, but ultimately it will punish drivers, increase traffic and harm our economy.”
The analysis, prepared for the TCC by Dr. William Buechner, a former senior economist for the Congressional Joint Economic Committee and Dr. Alison Black, ARTBA’s chief economist, is based on state motor fuel tax rate data for 2014 from the Federation of Tax Administrators and Federal Highway Administration data on federal apportionments for highway program investments to the state transportation departments.
The Transportation Construction Coalition (TCC) includes 31 national associations and labor unions whose members have a direct market interest in federal transportation programs. The TCC focuses on the federal budget and surface transportation program policy issues.
