Highway Fund May Be Insolvent By Mid-August

[H.E. Pennypacker]

http://online.wsj.com/article/BT-CO-...04-709939.html

The U.S. account that finances road and bridge repairs is likely to become insolvent by mid-August, U.S. Transportation Secretary Ray LaHood told Congress on Thursday. But he again ruled out a gasoline-tax increase to cover the gap.

The highway trust fund, which relies mostly on gas-tax revenue, will need up to $7 billion in additional money by the end of summer to ensure states continue receiving payments, LaHood told the transportation subcommittee of the House Appropriations Committee. The fund also will need up to $10 billion in the 12 months after September to ensure its solvency, LaHood said.

LaHood said the administration is trying to find money sources to shore up the fund.

"We're committed to paying for it," he said, adding, "This discussion is going on about every day at the White House."

He said the administration will "sooner rather than later" unveil its plan to shore up the fund.

But he said the President Barack Obama administration has ruled out raising the gas tax to provide additional funding, saying an economic recession isn't the time to make such a move.

"We are not going to raise the gasoline tax. I'll just say that emphatically," LaHood said.

Last year, Congress passed emergency legislation to provide $8 billion in extra money to shore up the highway trust fund.

This begs a couple questions:

1. Why wasn't more 'stimulus' money given to infrastructure projects (i.e. the highway fund)? All those 'shovel-ready' jobs seem to be sorely lacking, and unemployment keeps going up.
2. How much more evidence do people need before they realize the government can't run itself let alone a private business such as GM?

[Brick]

Total BS! If the fund is drained it is because Congress used the money elsewhere! Just like all of the other "funds" there is no dedicated pool of money for anything, only the "general fund" and they draw off that as needed.

[camper]

[*]How much more evidence do people need before they realize the government can't run itself let alone a private business such as GM?[/LIST]

The people won't hear about this given with the seriousness it deserves, because the MSM is too busy hoping that Obama won't eat any asparagus as it interferes with the flavor when they felate him.

That, and I don't think the people really want to know. Kind of like the parent who knows their precious daughter has turned into a cum dumpster but ignore that little tidbit of information because they don't want to have to deal with what that actually means.

camper