Billion dollar state budget losses: The cost of fuel efficiency
February 5th, 2010
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Coming soon to a bridge near you?
In just 15 years Washington State could experience a $3.8 billion state budget shortfall because of a decline in gas tax revenues due to hybrid and electric vehicle adoption according to a new report. That means $3.8 billion less to pay for highway projects and to maintain infrastructure, and that’s just one state.
Many other states, as well as the federal government, could experience similar shortfalls.
So, how will states and the feds make up this revenue? Higher gas taxes? M&S tax on all plug-in vehicles?
At some point, despite their foreign-oil and environmental friendliness, won’t plug-in vehicles have to pay their fair share of costs for highways and infrastructure maintenance?
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