In The News

Highway trust viable through 2012, LaHood says

U.S. Transportation Secretary Ray LaHood stated this week that the Highway Trust Fund will be OK until at least the end of fiscal year 2012. The Trust Fund has flirted with a near-zero balance a few times since 2008.

Sen. Patty Murray, D-WA, chair of the Senate Subcommittee on Transportation, Housing and Urban Development, asked LaHood during a hearing Thursday, March 10, if he thinks a transfer from the general Treasury will be necessary this year to keep the Trust Fund afloat.

The answer caught a few Senators off guard.

“Our people believe that the Highway Trust Fund has sufficient funds to stay solvent through FY2012,” LaHood told the subcommittee.

Ranking subcommittee Republican Susan Collins of Maine said she was surprised to hear the secretary’s comment, but pleased to hear it.

Since 2008, revenues in the fund from fuel taxes, heavy equipment purchases and other highway user fees have not kept up with spending projections.

Lawmakers have said that fewer miles traveled in recent years, along with better fuel economy in vehicles and a reduction in revenue from the 12 percent excise tax on heavy equipment purchases, have led to the decline in the fund.

Although the signs are improving, fuel prices remain the wild card.

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