Gas Tax

Governor Chris Christie has really made a mess of New Jersey's transportation finances. Since 2011, the governor's "flipping the couch cushions" strategy has resulted in the state amassing an additional $5.2 billion in debt.

The problem seems simple enough: The federal transportation program is going broke because Washington has allowed the gas tax to be eroded by inflation for more than 20 years.

Michigan state senators voted last week to approve a gas tax hike expected to net more than $1 billion annually to fix the state's notoriously potholed roads, reports the Free Press. The measure, if it passes the House intact, could also be good news for Detroit's woefully inadequate transit system.

Amid all the hand-wringing in Congress about transportation funding is one simple fact: The federal gas tax has been unchanged at 18.4 cents per gallon for 21 years. During that time, rising fuel efficiency and inflation have chipped away at how much the tax brings in and eroded the value of what remains.

Uber is celebrating. DC passed an Uber-legalization law that Uber thinks cities the world over should follow. The problem is, most cities have much more tightly regulated taxi industries than DC, with a far higher cost of entry. In those cases, letting Uber get away with providing taxi services while complying with none of the rules is unfair. The taxi companies have been screaming about this for a while now. Uber's response is something like, "Catch me if you can, old geezer." DC's contribution to that conversation strengthens Uber's position.

The federal transportation fund is running out of money, threatening the country with potholes, stopped construction, and economic downturn. Congress, which has kept the program solvent with short-term patches for years, now finds itself unable to do more than buy a few months’ time.

State transportation departments could see the federal funding they receive pared back as early as a few weeks from now if Congress doesn't come up with a transportation funding solution.

Yesterday, The Huffington Post ran this headline: “White House Appears More Open To A Gas Tax Hike.” Minutes later, The Hill published this one: “White House opposes gas tax hike to fix transportation funding.” So, which is it?

There are several proposals on the table to stave off the impending insolvency of the Highway Trust Fund (which pays for transit, biking, and walking projects too) in two months. Just now, two senators teamed up to announce one that might actually have a chance.