Acute Pain at the Pump Stalls Gas Tax Revenue

"I think the fundamental problem is that the gas tax is just becoming less and less reliable," said Virginia House Speaker William J. Howell (R-Stafford), who has called for more private investment in road and rail projects. "Why continue to look at that as the primary way to fund transportation needs? We need to find another way."

Aside from public distaste for gas taxes, government support for them has eroded in recent years as they have failed to keep pace with growing needs. Even with the proliferation of gas-thirsty SUVs, overall fuel efficiency has improved. As a result, the tax hasn't kept up with population patterns or states' needs to build more and better roads.

Efforts to raise the tax have also stalled. Lawmakers in Virginia and Maryland debate increases almost annually, but proposals rarely make it out of committee.

Virginia last increased its tax, to 17.5 cents per gallon, in 1987, and the District and Maryland haven't raised their tax rates since 1992. Maryland charges 23.5 cents a gallon; the District's tax is 20 cents a gallon.

The federal government tacks on an 18.4-cent gas tax, which pays for much of its contribution to transportation projects. State officials said the amount they receive from the federal government could shrink if drivers look to conserve gas.

Anderson said research by AAA indicates that drivers will be doing just that. "I think there's every reason to believe that we'll continue to see prices going up at the pump, and I think we're certainly going to see more curtailment if the prices keep going up," he said.

A gallon of regular unleaded averaged $2.68 in the Washington region yesterday, compared with $2.34 a month ago and $1.88 a year ago.

In fiscal 2005, Virginia took in $890.6 million in gas taxes, and Maryland took in $752.7 million. The gas tax crunch is most dire in the District, where revenue has dropped sharply over the past five years. In fiscal 2000, the city took in $31.8 million in gas taxes, compared with $26.6 million in fiscal 2004. The city is on course for a similar amount through the first nine months of this fiscal year, officials said, although they added that gas tax revenue was holding steady only because of new service stations, allowing more people to fill up in the city.

"If trends continue in terms of gas tax receipts, we'll be broke in several years," said Dan Tangherlini, the District's director of transportation. "We'll be in a position where we have to lay off administrative staff or we wouldn't be able to match federal highway funds."

If that happens, the alternatives are to "do less projects or we go to the general fund with a tin cup," Tangherlini added.