Drivers pay for only 1/3 of state/local road spending

Transportation topics in KC
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KCMax
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Drivers pay for only 1/3 of state/local road spending

Post by KCMax »

http://taxfoundation.org/article/gasoli ... d-spending
Nationwide in 2010, state and local governments raised $37 billion in motor fuel taxes and $12 billion in tolls and non-fuel taxes, but spent $155 billion on highways.[3] In other words, highway user taxes and fees made up just 32 percent of state and local expenses on roads. The rest was financed out of general revenues, including federal aid.

The ratios do not change much when adding in all transportation modes. In 2010, state and local governments spent $60 billion on mass transit, $23 billion on air transportation facilities, $1.6 billion on parking facilities, and $5.3 billion in ports and water transportation, in turn raising $13 billion in mass transit fares, $18 billion in air transportation fees, $3.2 billion in parking fees and fines, and $3.8 billion in water transportation taxes and fees.[4] Altogether, states raised about 36 percent of their transportation spending from user taxes, fees, and other charges.
Kansas is 27th in the country with 30% of costs borne by users, Missouri is 38th at 23%.

WHY DOESN'T I-435 TURN A PROFIT?????
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Re: Drivers pay for only 1/3 of state/local road spending

Post by knucklehead »

Why is government subsidizing these money losing roads!
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Re: Drivers pay for only 1/3 of state/local road spending

Post by pash »

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Last edited by pash on Tue Feb 07, 2017 1:59 am, edited 1 time in total.
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Re: Drivers pay for only 1/3 of state/local road spending

Post by aknowledgeableperson »

knucklehead wrote:Why is government subsidizing these money losing roads!
So you can benefit from many of the items you buy and use that are delivered by vehicles using them.
:)
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Re: Drivers pay for only 1/3 of state/local road spending

Post by KCMax »

pash wrote:Does that figure include the federal gas tax? I don't think it does, as I don't think the gap is that huge. ...

But in 2010, the federal Highway Fund ran a $14.7 billion deficit, which was made up from general revenue. The revenue shortfall is expected to grow substantially over the next decade as higher fuel-efficiency standards come into effect and gas taxes consequently raise bring in about 20% less revenue per mile driven.

The Wall Street Journal ran an interesting article several months ago on the problem, though it rather strangely ignored the obvious solution: raise the federal gas tax.
It does not include "federal aid". The federal gas tax pays for about 50% of roads and bridges. So probably more accurate to say users pay about 80% of road costs. Still, an unprofitable venture!

http://usatoday30.usatoday.com/news/nat ... 53228510/1
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Re: Drivers pay for only 1/3 of state/local road spending

Post by Eon Blue »

A further irony is that Brownback wants to roll the KTA into KDOT. I can guess which one of those comes closer to paying for itself!
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Re: Drivers pay for only 1/3 of state/local road spending

Post by dangerboy »

Federal gas tax goes almost exclusively to state-owned highways like Interstates. Very little federal gas tax goes to city and county-owned roads. Local city streets are paid for by local funds - sales, property, and earnings taxes. So users of I-70 pay for most of its upkeep, we all pay for paving Main Street whether we use it or not. Local streets have a lower "farebox recovery" than transit.
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Re: Drivers pay for only 1/3 of state/local road spending

Post by Pork Chop »

KCMax wrote:http://taxfoundation.org/article/gasoli ... d-spending
Nationwide in 2010, state and local governments raised $37 billion in motor fuel taxes and $12 billion in tolls and non-fuel taxes, but spent $155 billion on highways.[3] In other words, highway user taxes and fees made up just 32 percent of state and local expenses on roads. The rest was financed out of general revenues, including federal aid.

The ratios do not change much when adding in all transportation modes. In 2010, state and local governments spent $60 billion on mass transit, $23 billion on air transportation facilities, $1.6 billion on parking facilities, and $5.3 billion in ports and water transportation, in turn raising $13 billion in mass transit fares, $18 billion in air transportation fees, $3.2 billion in parking fees and fines, and $3.8 billion in water transportation taxes and fees.[4] Altogether, states raised about 36 percent of their transportation spending from user taxes, fees, and other charges.
Kansas is 27th in the country with 30% of costs borne by users, Missouri is 38th at 23%.

WHY DOESN'T I-435 TURN A PROFIT?????
dangerboy wrote:Federal gas tax goes almost exclusively to state-owned highways like Interstates. Very little federal gas tax goes to city and county-owned roads. Local city streets are paid for by local funds - sales, property, and earnings taxes. So users of I-70 pay for most of its upkeep, we all pay for paving Main Street whether we use it or not. Local streets have a lower "farebox recovery" than transit.

Thanks to you both for your posts.
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