Highway Trust Fund in Trouble
- Published: Thursday, 03 February 2011 11:47
In the current fiscal year ending Sept. 30, CBO projects a national deficit of $1.48 trillion, or $414 billion more than it estimated last August – prior to the tax deal reached between President Obama and GOP leaders in Congress during the lame-duck session. For fiscal 2012, for which the president will submit his budget proposal later this month, CBO’s baseline now projects a deficit of $1.1 trillion, or $665 billion more than expected.
Prior to the release of its annual outlook, CBO also issued a report on Spending and Funding for Highways in which it discussed the future role of the federal government in our nation’s transportation infrastructure and the challenges facing this Congress as it considers reauthorization legislation. CBO sees three important questions for lawmakers: how to structure decision making about highway projects; how much money to spend on highways; and how to pay for that spending. Although not groundbreaking in its analysis, the report reinforces the importance of swift enactment of a multi-year surface transportation reauthorization bill.