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Funding Structure

I stated there was funding structure problem in my previous linked post. A little elaboration:
- Interstate Highways are primarily funded through taxes on gasoline
- Roads are primarily funded through local government taxes
- Airports are a hodgepodge of federal funds, local funds, and airline ticket fees
- Railroads are largely privately funded (with government grants occasionally subsidizing choice projects)

We are so hot-to-trot to increase fuel efficiency (a good thing!) in this country that we are ignoring the problem of decreased funding for highways and roads. I’m all for weening off the foreign oil teat, but there are unintended consequences.

The funding problem also creates a barrier to shipping goods efficiently. Railroads can’t compete with trucking companies on LTL (Less-than-TruckLoad) shipments due to funding inequality. Trucking company’s benefit from an infrastructure that is funded by a giant pool of taxes whereas railroads pay for their own infrastructure and then pay property taxes on top of that.

Not all LTL shipments can efficiently be moved to rail but it sure seems that intermodal rail shipping could do a lot more to relieve the highways if funding were more balanced. Large LTL shippers like UPS are heavy users of intermodal rail shipping.

Mind you, I’m not arguing for the federal government to start funding more rail projects. However, I do think that a balanced funding structure would greatly aid transportation efficiency in the States.