John Hennessy III,
P.E.
Indexing fuel taxes to inflation in addition to imposing a states’ sales tax increases revenue significantly but suffers from a continuous decline in the long-run due to increased fuel efficiency. Our results indicate that although a mileage fee is politically and technologically difficult to achieve, it avoids a declining tax revenue in the long-run.
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Given tight federal budget restraints and shrinking transportation trust fund revenues, states and the federal government need to find alternative financial resources to finance needed transportation infrastructure projects, especially maintaining and expanding the capacity of the Interstate Highway System. Increased use of public–private partnership contracts (P3s) promises to help finance some of the needed infrastructure projects, but the federal government needs to allow states more freedom to use P3s, and states need to adopt the policies and practices needed to use P3s effectively.
John Horsley is Executive Director of the American Association of State Highway and Transportation Officials (AASHTO). From 1993 to 1999 he served as Associate Deputy Secretary at the U.S. Department of Transportation. A native of the Northwest, Horsley was elected to five terms as County Commissioner in Kitsap County, a community just west of Seattle. He is Past President of the National Association of Counties, and was founding Chairman of the Rebuild America Coalition.
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