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Monday, December 19, 2011

The Least Greatest Generation (At Least When It Comes to Funding Roads)

Posted by on Mon, Dec 19, 2011 at 1:56 PM

Among the many stories I failed to find the time to comment on last week was a task force report that recommended spending an additional $21 billion over the next ten years to help close a backlog of deferred maintenance on our state's roads, bridges and ferries. That's in addition to the 9.5 cent gas tax increase passed in 2005, which has already been fully committed and bonded out.

So why the huge transportation backlog, and why the need, as the task force suggests, to raise the gas tax by as much as 20 cents a gallon? Well, to understand that, you need only look at a graph I drew up back at HA during the last gas tax debate, charting the tax in both nominal and inflation adjusted dollars over time:

GasTaxChart2.jpg

Sure, this is a six-year-old chart projecting inflation four years into the future, but regardless, it's clear to see that even after tax increases in 2002 and 2005, adjusted for inflation, the gas tax is still well below historical highs. Because the gas tax is levied as a fixed dollar-value per gallon, rather than as a percentage of the sales price, the value of the tax is gradually eaten away by inflation unless the tax is periodically increased… which is exactly what the Legislature has routinely done since the tax was first implemented in 1921. Indeed, one of the reasons the recent round of tax hikes seemed so shocking, is that the Legislature failed to raise the tax from 1991 through 2002, allowing real revenues per gallon to fall near an all-time low. It is no wonder that during that time, maintainance was deferred, and our transportation infrastructure was allowed to slip into its current state of gradual decay.

The fact is, the true reason we have such a huge transportation backlog is that a generation of Washingtonians declined to pony up the dollars necessary to maintain the infrastructure previous generations ponied up to build. Simple as that. We've been living off past investments, while refusing to invest in the future.

Elected officials may seek to sugar-coat it, but as a state, we've simply been cheap and lazy.

 

Comments (12) RSS

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Fnarf 1
I would also guess that due to greatly improved construction standards, highway safety standards, and plain old lust for gigantism, the cost of building a mile of road has gone up many times the rate of inflation. Go look at any new project and see the amount of concrete they poured, compared to the paltry efforts of fifty years ago. I think there's more concrete in the circular pedestrian overpass behind the stadiums at Edgar Martinez Way than there is in the entire viaduct.
Posted by Fnarf http://www.facebook.com/fnarf on December 19, 2011 at 2:04 PM
Will in Seattle 2
Good point.
Posted by Will in Seattle http://www.facebook.com/WillSeattle on December 19, 2011 at 2:10 PM
Steven Bradford 3
The viaduct could be exhibit A.

There are also far more roads, not just to handle the expansion in urban areas. There are now paved roads in rural areas that were gravel and dirt roads two and three generations ago.

Yet, we feel entitled to not paying for it.
Posted by Steven Bradford http://www.seanet.com/~bradford/ on December 19, 2011 at 2:29 PM
gloomy gus 4
Thanks for posting about this. It's a helluva study, so nothing will be done and we'll sit around wondering what happened and who to blame.
Posted by gloomy gus on December 19, 2011 at 2:51 PM
5
@1

Your point is taken, but your comparative example is an unlucky choice. The work near the stadia happens to contain a lot of geofoam (basically styrofoam on 'roids), and not a lot of concrete. And yes, the geofoam is cheaper.
Posted by Looking For a Better Read on December 19, 2011 at 2:56 PM
Will in Seattle 6
@3 for the Epic Funding Failure win!
Posted by Will in Seattle http://www.facebook.com/WillSeattle on December 19, 2011 at 2:59 PM
TVDinner 7
Another weakness in our funding structure for roads is the feds will fund new roads but never maintenance. Every state in the union faces these challenges, partially because of that.
Posted by TVDinner http:// on December 19, 2011 at 3:12 PM
8
The graph looks even more depressing when you factor in the improved gas mileage of modern vehicles. Gas tax revenue per vehicle-mile-traveled has also gone down, compounding the problem.
Posted by Citizen R on December 19, 2011 at 3:36 PM
Dr_Awesome 9
Fnarf: and also the costs to mitigate for environmental damage. Something civil engineers in the sixties didn't have to pay for. An intersection can be signalized for a quarter million. The stormwater detention pond will cost a cool mil.
Posted by Dr_Awesome on December 19, 2011 at 5:14 PM
Fnarf 10
@5, I didn't know that, cool. Still a hideous pile of work, but interesting.

@9, good point.
Posted by Fnarf http://www.facebook.com/fnarf on December 19, 2011 at 6:23 PM
11
and here's another (mostly) unknown fact on this issue: gas is exempt from WA state sales tax. most people think that the gas tax and road tax is on top of the sales tax already charged -- but its not.

and it should be.

ending this loophole would be a great place to start in all the wrangling to close the state budget gap.
Posted by andy roosevelt on December 23, 2011 at 6:25 AM
12
The gas tax should be made a percentage, like the sales tax. Then it would automatically go up with inflation.
Posted by John Charles Wilson on December 23, 2011 at 9:35 AM

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