LOWER GASOLINE SALES REDUCING HIGHWAY FUNDS

(01/22/2008)
The crunch for funds to repair and build West Virginia roads is expected to get worse.

State transportation officials told WV legislators they are worried that a cash crunch to fund road projects appears imminent.

Transportation Secretary Paul Mattox told the Senate Finance Committee last week that state motor-fuel tax collections are projected to drop $25.8 million in the 2008-09 budget year.

The gasoline-oil tax is the single largest source of revenue for the state road fund.

Mattox told legislators "People are buying less gas."

Mattox said the state will begin to see the impact of higher gas prices this year, with more consumers switching to more fuel-efficient vehicles, while others have cut back on travel.

"The problem is not isolated to West Virginia," he said. "It's a problem with every state in the country."

"We're trying to figure out how to fund these much-needed roads," Mattox said.