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18 july 2015 FOGHORN LEGISLATIVEReport 2570 Beverly Dr. 128 Aurora IL 60502 T 630.236.3500 CENTA Power trAnsmIssIon LeADIng By InnovAtIon USA based production Over 20 unique designs Over 16 million sold Torsional vibration experts Trust CENTA The Global Innovator Since 1970 CENTALINK Carbon Fiber Driveshafts Innovative flexible couplings for marine applications surface transportation bill Whats the stumbling block that prevents agreement on a replacement law that would have a duration of five or six years the customary life-span of a highwaytransit law The dilemma comes down to money. Funds for highway and transit construction come primarily from the federal governments Highway Trust Fund. Revenues placed into the Highway Trust Fund are generated by the federal tax collected from motorists when they fill up at the gas pump. For a variety of reasons there no longer is enough revenue going into the Trust Fund than the amounts needed to construct repair and maintain the countrys highways and transit systems. It costs more to build or repair a road now than it did in the past just as it costs more to build a ferry vessel or terminal. However revenues into the Trust Fund are not keeping pace. Thats partly an unintended result of our nations great success in improving fuel efficiency for vehicles. Even though the number of miles driven keeps rising the number of gallons of gasoline consumed hasnt gone up commensurately because the typical car or truck can travel so much further on a single gallon of fuel. The biggest factor however is that the federal gas tax has been stagnant for just about 23 years. The current rate 18.4 cents per gallon was estab- lished in 1993 during the first year of Bill Clintons presidency. Given the rising costs of road construction since that time gas tax receipts simply no longer produce the amount of revenue needed today. For the most part lawmakers of both parties are unwilling to consider increasing the federal gas tax to fund the Highway Trust Fund. Other sources of revenue have been bandied about. Some have suggested a tax based on miles driven by a motorist. Others have offered the idea of enacting incen- tives to encourage corporations with monies parked overseas to re- patriate those earnings thereby producing a one-time infusion of income taxes.And the idea of tapping general revenues has proponents. However no proposal for increasing revenues has gained sufficient leg- islative traction nor has the idea of combining several of these proposals.