Solving the Transportation Funding Crisis

Solving the Transportation Funding Crisis

By Jaime Rall| Vol . 21, No. 41 / November 2013

NCSL NewsStates across the nation now face a well-documented and worsening transportation funding crisis, as dedicated revenues fail to keep up with infrastructure investment needs. Gas taxes— still the primary source of state and federal transportation funding—are on the decline due to fuel-efficient and alternative fuel vehicles, less driving nationwide, and the plummeting purchasing power of cents-per-gallon taxes in light of inflation and rising construction costs. Years of underinvestment, aging infrastructure, the effects of the economic recession and growing transportation demand are also contributing factors. The good news is that states are leading the way to find immediate and long-term transportation funding solutions.

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