As the new fiscal year looms, Texas faces a highway calamity if the U.S. Senate continues their do-nothing ways.
The Federal Highway Trust Fund could be insolvent as soon as August. The fund is created from the nationwide gas tax of 18¢ a gallon. That flat tax has not been increased in 20 years. Meanwhile, the price of gas has tripled and number of registered vehicles in the U.S. has increased 25%.
This has created a situation where highway infrastructure costs have increased while the fund to pay for it has not.
Texas' share of the pot is expected to top out at $3.8 billion, a loss which would cripple the states ability to repair roads. That is something Professor Stephen Klineberg at Rice University says will not happen, "Well it is just so hard to imagine Congress doing something as stupid as that. They may not get their act together right away but eventually they will, they have to."
Right now the U.S. Senate will have to pass some sort of reform to make sure the fund stays solvent. This has been done recently by what many in Congress call, gimmick accounting. It is estimated that if the fund is allowed to go broke 700,000 jobs will be lost.