Last week, USA Today had a story about how the decline in miles traveled by America’s drivers, largely the result of historically high gasoline prices, has reduced the number of miles traveled by some 1.4 billion miles in April 2008, as compared to the same month the year before.  As a result, other outlets are reporting about how this will affect the federal Highway Trust Fund (HTF) which is funded almost exclusively by the 18.3 cents per gallon taxes paid on gasoline and 24.8 cents per gallon tax on diesel by the nation’s drivers and truckers.

Most of these stories failed to mention that the HTF was teetering on bankruptcy long before gas prices crossed the $4 barrier.  Since passage of the most recent highway bill in 2005, TCS and others have been trumpeting that the HTF was on a fast road to red ink as a result of too much spending and not enough income into the HTF.  The recent drop in miles traveled has only exacerbated a problem, not created it.  One thing is certain: sometime during fiscal year 2009, there will be no money left in the HTF.

What is really troubling for the nation’s drivers is the impact this will have on our federal highway program.  Though the deficit is projected to be as much as $5 billion, as a result of how highway projects are funded, this could mean a one-third reduction of highway and transit spending.  That is a dramatic reduction, and one that could have disastrous impacts on the projects that would make your trip to work more efficient and safer.

Likely, Congress will simply craft a bailout, and under the guise of “emergency” spending will backfill the HTF with the billions necessary to keep the system working for a few more months.  But that will not solve the underlying problems and challenges that face our transportation system. 

Very soon, Congress will again be faced head-on with these challenges, as the current transportation bill expires in 2009.  The options that will be debated will include raising the gas tax, reducing spending, and devolving the program back to primarily state and local control.  Other ideas are sure to percolate, and I hope that Congress will seriously consider any and all options to figure out how to solidify the nation’s transportation program.