Senate Finance Committee Weighs Several Options to Pay for Reauthorization
Saturday, May 28, 2011 at 12:42PM Click here for complete article > AASTHO Journal
May 20, 2011
The Senate Finance Committee examined numerous proposals to increase federal revenue for transportation projects during a Tuesday hearing, but no consensus appeared to come from the discussion among committee members.
Committee Chairman Max Baucus, D-Montana, said in prepared remarks that the Highway Trust Fund faces significant challenges. He noted the fund relies on fuel taxes for 90% of its revenue, but high gas prices and fuel-efficient vehicles have reduced consumption and thus excise taxes collected per gallon.
"To get our budget in order, we will have to make a lot of difficult choices," Baucus said, alluding to the fact the federal government has reached its debt ceiling and the U.S. Treasury Department is now engaging in accounting measures to keep payments flowing until Congress ups the limit. "But we also need to look for ways to be creative. Because the longer we wait to address our aging infrastructure, the more it will cost in the long run. Every failed bridge and broken levee has a significant cost in terms of dollars and cents. More importantly, these tragedies can cost lives." ...
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