WASHINGTON -- New federal data shows that Americans drove 9.6 billion fewer vehicle-miles traveled (VMT) in May 2008 than in May 2007, said the Federal Highway Administration. This is the largest drop for any May, which typically reflects increased traffic due to Memorial Day and the beginning of summer, and is the third-largest monthly drop in the 66 years the data have been recorded. Although the decline contributes to U.S. policy goals, such as reducing oil consumption and curbing emissions, as Americans drive less and rely increasingly on mass transit, carpooling or other options, the federal [image-nocss] Highway Trust Fund—used maintain, repair and expand the nation's transportation infrastructure—receives less revenue from gasoline and diesel sales—18.4 cents per gallon and 24.4 cents per gallon, respectively.
VMT on all public roads for May 2008 fell 3.7% as compared with May 2007 travel, marking a decline of 29.8 billion miles traveled in the first five months of 2008 than the same period a year earlier.
North-East, 38.1 billion miles traveled (-4.2% from May 2007) South-Atlantic, 54.1 billion (-4.1%) North-Central, 57.2 billion (-4.5%) South-Gulf, 49.6 billion (-3.2%) West, 55.8 billion (-2.3%)This continues a seven-month trend that amounts to 40.5 billion fewer miles traveled between November 2007 and May 2008 than the same period a year before.
The steep decline in the number of miles Americans are driving is proof that the country needs new means—other than the gasoline tax—to finance the transportation infrastructure, U.S. Secretary of Transportation Mary E. Peters said. "By driving less and using more fuel-efficient vehicles, Americans are showing us that the highways of tomorrow cannot be supported solely by the federal gas tax. We must embrace more sustainable funding sources for highways and bridges through more sustainable and effective ways such as congestion pricing and private activity bonds," she said.
"Less driving means less money for the Highway Trust Fund," added Acting Federal Highway Administrator Jim Ray. "The status quo cannot and will not work in the 21st century."
The decline in funding, added a report by The Wall Street Journal, comes at a time when surging costs for asphalt and other construction materials already are straining state and local transportation budgets. Those cost increases make it more expensive to maintain the nation's roads, bridges and rail networks. In many areas, the ragged edges are already showing. About 25% of bridges in the U.S. are either "functionally obsolete" or "structurally deficient," like the Mississippi River bridge that collapsed in Minneapolis last August, killing 13 people.
Moreover, the pavement is rated "not acceptable" on one of every seven miles of the nation's roads, according to the report, citing the National Surface Transportation Policy & Revenue Study Commission, which assesses infrastructure problems and recommends fixes. Overall, the commission estimated, $225 billion a year is needed to meet the country's transportation infrastructure needs. Current spending is about 40% of that level.
The Bush administration is expected to release figures projecting a deficit of $5 billion or more in the Highway Trust Fund for next year. Thanks to steady increases in driving, since it was set up under President Dwight Eisenhower, the trust historically has run a surplus. It steers gasoline-tax revenue through a federal appropriations process before sending it back to the states.
Last week, the House passed a bill targeting $8 billion for highway and mass-transit projects. The measure has a good chance of clearing the Senate as well, despite White House reservations.
Also, the House passed legislation that designates an additional $1 billion for bridge repair. House and Senate leaders are talking about including a significant increase in infrastructure spending in a possible second economic-stimulus bill.
The moves are a prelude to a debate expected next year as Congress considers a new, six-year transportation bill that could authorize more than $400 billion in spending, said the report.
Peters said administration officials are crafting an overhaul plan aimed at shaping the debate. The goal would be to give states more flexibility to set transportation spending, while making it easier for them to tap private-sector dollars. Also under consideration: asking Congress to loosen restrictions on states levying new tolls on interstate highways.
A big question will be what to do about the Highway Trust Fund, which pays for the promises laid out in each transportation bill. Another quandary will be whether a greater share of transportation dollars should go to rail or other nonhighway options.
With consumers already recoiling from high prices, raising the federal gasoline tax is not a politically viable option. In fact, debate in the presidential campaign this year has centered on whether to give consumers a gasoline-tax holiday, a step presumptive Republican nominee Senator John McCain has endorsed. Sen. Barack Obama, the presumptive Democratic nominee, and other lawmakers have proposed a $60 billion national infrastructure bank that would fund projects that could improve regional and national transportation.
Consumers began tapping the brakes on driving in November, but by the spring, with gasoline prices hovering around $4 a gallon, many were leaving their cars in the driveway. March, April and May marked the steepest three-month pullback on record, the new data show. The pullback over that short period is approaching the periodic declines seen throughout the volatile 1970s, when an oil embargo and the Iranian revolution sparked long lines at gasoline station and two major oil shocks, said the Journal.
"In the past...we've seen driving bounce back pretty quickly," said Peters. "That is not the case now."
As debate heats up, the retreat from the roads shows how consumers are altering the transportation equation. With driving down, the number of people riding Amtrak has risen 11% this year, and mass-transit systems in many areas, including Seattle and South Florida, are experiencing ridership increases of 30% or more, according to the report, citing the American Public Transit Association. Meanwhile, many consumers are rethinking their transportation options and drastically altering their travel patterns, forcing auto makers to overhaul their plans and straining the capacity of many transit systems.
Click hereto view the Federal Highway Administration's "Traffic Volume Trends" report for May 2008.
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