45 feet. These funds come from general revenues. The Federal Government pays 100 percent of O&M costs for harbors less than or equal to 45 feet in depth and 50 percent of the cost for deeper harbors. The O&M costs come from the Harbor Maintenance Trust Fund, which receives proceeds from a 0.125 percent ad valorem tax on commercial port users collected by U.S. Customs. The Federal Government’s participation generally is limited to the navigable channels. Individual berths and piers are generally dredged by the port or terminal operators. Inland waterway navigation improvements are financed entirely by the Army Corps of Engineers. Feasibility studies, O&M costs, and 50 percent of construction costs are paid from general revenues, while the remaining 50 percent of construction costs are paid for through the Inland Waterways Trust Fund (IWTF). The IWTF receives proceeds of a 20-cents-per-gallon fuel tax on commercial vessels using inland waterways.
Exhibit 5-13 shows projected cash balances in the Highway and Transit Accounts of the HTF from 2006 to 2012. The Highway Account balances are projected to decline from $9.2 billion in 2006 to -$4.3 billion in 2009 if corrective actions are not taken. Without action, Highway Account balances would become increasingly negative, reaching -$26 billion by 2012; Transit Account balances are projected to increase slightly through 2008 but then decline to -$0.7 billion in 2012. The Commission recommends that legislation be passed in FY 2008 to keep the Highway Account of the HTF solvent and prevent highway investment from falling below levels guaranteed in SAFETEA-LU. Exhibit 5-13. Projections of Highway and Transit Account Balances Through 2012 Dollars, Billions 15.0 10.0 5.0 0.0 -5.0 -10.0
Future Surface Transportation System Financing Issues This section discusses issues facing future financing of the surface transportation system. It presents forecasts of future revenues from existing sources and recommendations for meeting increased surface transportation investment requirements discussed in Chapter 4. Long-term alternatives to the fuel tax are also discussed.
Keeping the Highway Trust Fund Solvent It is widely known that balances in the HTF are falling, especially in the Highway Account.
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Volume II, Chapter 5
-15.0
Highways
-20.0
Transit
-25.0 -30.0
2006
2007
2008
2009
2010
2011
2012
This exhibit shows projected balances in the Highway and Transit Accounts of the Highway Trust Fund through 2012 assuming no change in revenues or program levels. Source: U.S. Department of the Treasury projections.
The following are several options that have been recognized as having the potential to address immediate shortfalls in the Highway Account of the HTF.
Increasing one or more of the existing taxes that go into the HTF