Better fuel taxes than tolls: ATA

ALEXANDRIA, Va. — In what it describes as one of the first studies to examine highway funding from a system user perspective, the American Transportation Research Institute says that more fuel taxes, not increased tolling and privitation, is the way to go in boosting America’s highway network.

In the study, Defining the Legacy for Users: Understanding Strategies and Implications for Highway Funding, ATRI — the research arm of the American Trucking Associations — proposes new transportation funding options and identifies losses exceeding $900 million annually in critical transportation funding from state and federal fuel tax exemptions.

Highway tolling and privatization threatens rural
communities, according to the latest ATRI study

In response to numerous state and federal efforts to pursue tolling and highway infrastructure privatization as the answer to the U.S.’s transportation funding shortfalls, ATRI’s research shows that collection costs for fuel taxes range from 3 to less than 1 percent of revenue, while toll collection revenue-to-cost ratios exceeding 21 percent.

“Every state legislator needs to understand that tolling is not an efficient way to improve transportation,” said George Billows, executive director of the Illinois Trucking Association.

The study also highlights the threat to rural America resulting from the push toward tolling and privatization. Rural corridors lack the necessary population densities and financial base to attract private sector investors focused on profit, says ATRI. “Yet these same corridors are critical links in the U.S. supply chain, providing essential commodities and connectivity between states and metropolitan areas.”

“Pursuing funding strategies that knowingly fragment our national transportation system is simply bad business. Our products have their genesis in this country’s heartland, and we rely on those same connectors to deliver goods to American consumers,” said Jack Shawn, senior operations manager for TFE Logistics.

Described by the group as the most “efficient and equitable method” for raising revenue, ATRI recommends increasing the fuel tax in conjunction with elimination of numerous costly fuel tax exemptions and diversions from the highway trust fund. In total, the study identifies an additional $10 billion to $38 billion, which could be raised in annual revenues for highway infrastructure.

Adds Pat Quinn, co-Chairman of U.S. Xpress Enterprises: “ATRI’s study identifies many cogent issues which require public dialogue as we chart the future of surface transportation. I look forward to sharing the findings with my fellow commissioners.”