Pay As You Go

California faces a crisis in the funding of its freeways. As most drivers know, highways are funded primarily by gas taxes levied upon each gallon consumed by the motoring public. But gas tax revenue in California, as well as across the nation, is falling as cars become more efficient and more electric cars or hybrids hit the streets. All of this is great news for our environment, but lousy news for the condition of our highways.

The problem in part is a good one. Thanks to technological advances and heightened concern for the environment, motorists are buying less gasoline for each mile driven. But as a result, state gas tax revenues that pay for our roads have been falling for decade, at an increasing rate of decline, leading to more potholes and traffic jams with ever decreasing investment in maintenance.

Mr. Kempton is a guest of Wendel Rosen’s Construction Practice Group’s Infrastructure Forum.

This is a complimentary event for firm clients and guests.