Highway Fund Sees Huge Windfall

Burning more gallons of fuel means federal transportation budget makers will have a $3 billion windfall to work with in fiscal 2001.

The booming economy leads to more fuel consumption, which in turn produces an increase in fuel tax revenues flowing into the Highway Trust Fund, according to Jack Basso, assistant secretary of transportation for budget and programs. His remarks were made at a Jan. 31 appearance before the American Association of State Highway and Transportation Officials.

While there will be lots of money to spend on transportation in general and highways specifically, there is no agreement among policy-makers as to how the money should be spent. In 1998 Congress passed a bill spending money on highways and transit programs. Taking a different tack, Clinton administration officials in the DOT tried unsuccessfully last year to use much of the revenue for technology and environmental programs.

Speaking at AASHTO’s annual legislative briefing in Arlington, Va., Basso would not say if the administration would again seek to divert extra fuel tax revenue to non-highway programs. Further complicating matters for the trucking industry, there does seem to be some agreement between the Democratic administration and the Republican Congress that aviation is the top transportation issue that the federal government should address.

For the full story, see the Feb. 7 print edition of Transport Topics. Subscribe today.