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Fed woes could mean big price for state

Local transportation officials aren't sure just yet what a massive shortfall in federal funding means for Washington's roads, but there's a chance the state could be left holding the tab for millions of dollars.

The Associated Press reported earlier today that "the federal highway trust find will run out of money this month, requiring delays in payments to states for transportation construction projects."

By the end of September, the federal account (which pays for highways and bridges) will come up short by around $8 billion, Transportation Secretary Mary Peters told reporters.

Here's what the AP reported:

Peters blamed the funding shortage on the high price of gasoline, which has prompted Americans to drive less. This means less fuel has been purchased, and less gasoline taxes collected for the trust fund. Americans drove 50 billion fewer miles between November and June 2008 than during the same period a year earlier.

Compounding the problem, Peters said, is federal lawmakers' habit of loading up highway spending bills with pet projects, or earmarks, for their home states. The current highway spending bill has more than $24 billion in earmarks, she said.

Without federal reimbursement, Washington state could be responsible for paying contractors working on improvements to local infrastructure.

"If we are not fully reimbursed at the levels we have anticipated, the state will have to pick up the rest of the tab," said Washington State Department of Transportation spokesman Lloyd Brown.

The state was anticipating between $33 million to $54 million in federal transportation funding every month for the next five months, Brown said. Local agencies – including cities and counties – were probably anticipating between $15 million and $30 million, he added.

For now, it's too early to say if national shortfalls will put a stop to or stall local projects; local officials are waiting on a quick-fix at the federal level, Brown said.

It's anticipated that the federal transportation deficit may be relieved by $8 billion transferred from the general fund. But Washington's transportation officials say that will only sustain the nation's infrastructure for a short while, and that a long-term solution is needed.

The AP reports that Sen. Patty Murray had this to say:

"If we don't pass a solution fast, we'll be forced to cancel critical highway construction and repair projects that ensure our roads and bridges are safe and secure."

Posted by at September 5, 2008 4:09 p.m.
Categories: , ,
Comments
#175949

Posted by myopinion_matters at 9/5/08 5:26 p.m.

hey Murray, you all wanted us to drive less, so this is what happens ! you too stupid to think ahead and understand the consequences. Yeah, I think so !

#175989

Posted by rambo_the_dog at 9/5/08 6:35 p.m.

This is riotous!

LOL

When there's more cars on the road = more wear and tear on infrastructure, more money in the tax coffers...but still it's not enough, although with economies of scale principles we should be getting more done.

Then when the revenue dries up - ie people drive less which = less wear and tear on infrastructure they get in a panic!

The Government @ State and Federal levels needs to get their act together - billions are wasted on transportation related projects alone..we don't need to pay more taxes!

#175995

Posted by myopinion_matters at 9/5/08 6:48 p.m.

I think we need to take about 50% of these dumb344 Senators salaries and donate it to the national highway fund so they can get a grip on the reality of things.

#175997

Posted by unregistered user at 9/5/08 6:59 p.m.

Why does the US have a billion dollars on hand to send to Georgia but can't get a few million to fix the roads? Where are our priorities? Our infrastructure is completely crumbling while we spend billions abroad, flexing our muscles and filling the pockets of private contractors such as Blackwater, etc. etc.

#176017

Posted by Lookitsme at 9/5/08 8:16 p.m.

Good thing we're wasting hundreds of billions of borrowed dollars on Bush's pet war.

Unfortunately, we can look for more of the same in the unlikely event that McSame can con enough folks into falling for it again...

#176030

Posted by Minimlst at 9/5/08 9:09 p.m.

Maybe you could borrow some of Gov. Palin's "Bridge to Nowhere" money.

#176051

Posted by Cameron08 at 9/5/08 10:11 p.m.

Not to worry starting September 15 in the multi-mile construction zone on I-5 near Chehalis the State is setting up a series of speed trap cameras to capture your license plate numbers and send you a $137.00 ticket. But don't worry it's just an experimental program, once they work the kinks out DOT will have them at all "construction zones" across the State. No more revenue problems, throw in a couple of tolls and bammo! balanced budget.

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