Following the Minneapolis bridge collapse, I keep seeing news stories calling for new taxes to repair our sagging infrastructure.  We should now be alarmed at the state of disrepair of our public roads and bridges.  The ONLY solution appears to be a new gas tax.

From a recent USA today article…

The Minneapolis bridge disaster that suddenly is the symbol of the nation's crumbling infrastructure could tip the scales in favor of billions of dollars in higher gasoline taxes for repairs coast to coast.

There are 500 bridges around the country similar to the Minneapolis span, and "these are potential deathtraps," says Rep. Don Young, R-Alaska, former chairman of the House Transportation Committee.

"We have to, as a Congress, grasp this problem. And yes, I would even suggest, fund this problem with a tax," he says. "May the sky not fall on me."

What's the big deal?  It's only a 5¢ per gallon increase.  With gas hovering around $3 a gallon, you will hardly notice it.

I object to that line of thinking.  Let me introduce government to a new concept… reallocation. 

You are already familiar with the concept.  When your electric bill spikes with summer air conditioning costs, where does the money come from?  Do you take the bill to your employer and demand funds to cover the increased cost?  No.

In my family budget, the money is taken from other expense categories.  We don't eat out as often.  Our entertainment budget is scaled back.  We may cut back on saving (yes, we run a razor thin surplus in the family budget).  Where has the Federal Government offered to cut back? 

In the FY2008 budget, the Federal Government will spend an estimated $79.282 billion dollars on transportation.  Let's compare this to other spending categories…

 

Transportation (air, ground, water transportation)  $  79.3 Billion  3%
Health Care & Medicare (medical) $ 672.3 Billion 23%
Social Security (old age, disability) $ 612.5 Billion 21%
Defense (Military) $ 606.5 Billion 21%
Income Security (housing, unemployment, food stamps, etc) $ 380.8 Billion 13%
Interest (paid on debt) $ 261.3 Billion 9%
Other (Energy, Science, Agriculture, Natural Resources, Justice, Commerce, International Affairs, Community, Education, Veterans ) $ 288.6 Billion 10%

 

There is an estimated 4% growth from FY2007 to FY2008.  If we freeze the cost of government to the FY2007 budget and apply the 4% growth to infrastructure, transportation would be funded at $202.5 Billion.  This is additional funding of %153 to infrastructure.  All other agencies would be funded with the EXACT SAME funds next year as they had this year!

Problem Solved!

It's called… living on a budget.  Congress should be required to listen to Dave Ramsey every day until they get it!  

 

The budget numbers in this post came from http://www.whitehouse.gov/omb/budget/fy2008/pdf/hist.pdf