Study: Non-road users paying for increasing share of road costs

$70 billion in 2007

Vilas Bhuchar, Nov 30, 09.

Taxes and fees not directly related to highway use (“non-user fees”) and bonds are paying for an increasing share of road costs, according to a study released by Subsidyscope.

The study is summarized in a story on Streetsblog, which shows that federal highway revenue derived from non-users of the highway system has doubled between 1982 and 2007:

Analyzing Federal Highway Administration data dating back to 1957, the dawn of the Interstate system, Subsidyscope researchers found that non-users of the highway system contributed $70 billion for nationwide road construction and maintenance in 2007. In 1982, by contrast, highway contributions from non-users totaled just $35 billion (in 2007 dollars).

The study also shows that the share of road funding generated by user fees, including fuel taxes, vehicle registration fees, and tolls fell from 61 percent in 1997 to 51 percent in 2007.

Finally, the study notes that various factors account for the shift in funding away from user fees:

Fuel taxes lose their buying power unless adjusted to keep pace with rising highway construction and maintenance costs. The amount of federal fuel tax allocated to highway purposes has not increased since 1997 and states have had trouble increasing fuel taxes to keep up with inflation. Further, changes in driving patterns and fuel consumption can lead to unexpected dips and peaks in user revenues. For instance, increases in fuel prices at the pump can cause vehicle owners to cut back on driving, reducing revenues. Similarly, changes in vehicle efficiency can reduce revenues available from fuel taxes while vehicle usage remains constant.

(Photo Credit: Jasmic)