Ironic Downside to Better Gas Mileage!

Matthew Philips has written an article for Businessweek that zeroes in on one more current Congressional/National dilemma.  You may be aware that, ironically, getting better gas mileage as a nation has caused a steady drop in the funds available for road repair and building from both the Federal and State Governments. This is kind of funny, perhaps; but certainly not LOL funny… (http://www.businessweek.com/articles/2014-07-17/gas-tax-cant-fill-up-federal-highway-trust-fund).

Philips spells out how this is another case of how the Federal Government gridlock is actually going to starting to hit us harder – right where we live and drive! He notes that although this problem was seen coming down the pike at quite a distance, Congress just got around to passing a helpful bill in the House on July 15. It might pass through the senate soon; however it’s only a very temporary, stopgap measure at best…

What can we do to move beyond a Congress, or for that matter an entire Federal Government, that is mostly doing makeshift work on issues that are of utmost importance? Philips further explains:  “By early August the account (Federal Highway Trust Fund) will be so low on funds that the Department of Transportation will have to start cutting back on the billions of dollars it gives states for road and bridge construction projects. By the end of the month, the balance will be zero” . This might not cut down on road work zones as much as creating abandoned ones:  incomplete “Projects/Bridges to Nowhere.” (http://www.businessweek.com/articles/2014-07-17/gas-tax-cant-fill-up-federal-highway-trust-fund)

But worry not! Philips also reports that the House Bill calls for rescuing the Fund by “tapping tax receipts from corporate pension plans and diverting money meant to fix leaky underground storage tanks at old gas stations…” Feel better? I do, but not much.  Plus, what are the chances Congress will be able to agree anytime soon on a long-term way to deal with this problem?

I encourage you to check out Philips complete article at the above link. For one thing, you will find that currently there is an 18.5 cent Federal gas tax per gallon. The article shows the amount of tax each state adds per gallon. For example, where I live (IN) it is 56.5 cents. But I do have the option of moving to Alaska were the state only adds on 26.4 cents per gallon… However I’m guessing that most parts of Alaska have other factors that might have an adverse effect on the price per gallon.

Mr. Philip’s fine article also features a nifty U.S. Department of Transportation graph that indicates that from 1960 to 2012 the miles driven in our nation has risen nearly every year. No surprise given the population increase, though by 2012 it does show some signs of leveling off. But (here’s the “big butt”) the “Average fuel efficiency” of our cars continues to rise faster than miles driven. Although it’s slowing down it doesn't appear to show signs of leveling off. In fact are not new laws attempting to give the pace of the rise in average fuel efficiency a kick in the pants? Is this shooting the Federal Highway Trust Fund in the foot? No, I don’t mind mixing metaphors; but how can we help find a solution that might allow us to further save our air quality and still maintain our roads and maybe build a new one or two?

In some ways this leads us to the edge of the issue of climate change. But since there’s little controversy here; we don’t need to go there. So instead let’s try to somehow help congress to find a comprehensive solution that the majority will vote for… in our lifetimes…

To further excite matters, six states are currently looking at funding road projects based on a tax linked to how many miles a person actually drives. Hybrid and electric car owners should take note. While this sounds interesting and I want to know more about it, I still feel a little bumpy about the future funding for our roads or the “cost” of gasoline. (http://www.businessweek.com/articles/2014-07-17/gas-tax-cant-fill-up-federal-highway-trust-fund)

PS: FYI – I just phoned a clerk at an Eskimos Inc. gas station in Barrow, Alaska. She politely told me their pumps currently list regular, unleaded gas at $7.00 a gallon. But she further explained that it’s up a little right now and that they have a hard time just getting it. But don’t let this keep you from considering relocating to Borrow… I don’t want them to be angry at me… If you doubt my phone call, I understand. But I encourage you to start Googling and hope you too are able to talk to the same clerk with whom I chatted!

PPS: I didn't flirt with her; just the price per gallon!