More Tolls Could Boost Highway Funding, Reason Foundation Says
Tolling drivers along Interstate highways would help states come up with the additional funding they need to fix and maintain aging infrastructure, the libertarian think tank Reason Foundation argues in a recent report.
Released in March, the report urges states to adopt a “value-added” tolling concept as a way to shore up funds to maintain the highways where they would be used. The “value added” proposal also would entail adding tolls after major construction projects are completed, and tolls would have to replace existing taxes paid by users.
The think tank’s report is timely since states are scrambling to devise ways to address their infrastructure demands. The Highway Trust Fund, an account that provides aid to the states, relies on a gas tax that has not been increased since 1993. Federal lawmakers are not expected to raise the fuel tax, which is often seen as unpopular move with key groups and a portion of voters. Congressional budget analysts, meanwhile, project the fund to be insolvent by fiscal 2015.
While current law prohibits tolling, the think tank noted that a provision in the 1998 highway law established a program allowing three states to use tolling to pay for a reconstruction project on an interstate highway. As Congress proceeds with reauthorizing a 2012 transportation law that expires in September, transportation leaders are expected to propose alternatives to shore up the fund. The think tank urges Congress to adopt a new highway bill that allows every state to use tolling. “The fuel tax appears to be the highway funding source of the past, not the future,” according to the report.
Tolling is opposed largely by the Alliance for Toll-Free Interstates, which represents trucking, restaurants, truck stops, movers and vehicle-rental businesses. The group argues its members will face higher costs if tolls are expanded. Advocates for tolling argue that by adding certain tolls to parts of the interstate highway system, private agencies will be able to collect revenue and pay for maintenance and upgrades. Also, direct users would cover the bills.
