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Colorado is being greatly impacted by two issues that are converging as part of a growing crisis: sky rocketing fuel prices resulting in higher transportation construction costs and declining funding for roadway improvements resulting in deteriorating roadways and bridges.

Consider the following;

  •  The last increase in the state fuel tax came in 1992. On the federal side, it was in 1993. Since then, the purchasing power of these taxes has been nearly cut in half, primarily because of inflation and rising construction costs. For example, the producer price index (PPI) for diesel fuel has increased 186 percent since 2003. In addition, increasing fuel prices do NOT result in any increases in fuel tax revenue. In fact, it is much the opposite with a reduction in consumption due to higher prices.
  •  After the harsh winter of 2006-2007, CDOT estimated a 4 percent drop in overall highway condition statewide. However, due to budget reductions, the plan for the 2009 CDOT highway improvement budget is not to go up, but to be cut by 40 percent! As highways deteriorate from good to fair to poor condition, the cost increases significantly. A “keep the good roads in good condition” approach is virtually thrown out the window and it becomes crisis management. CDOT estimates that at current funding levels, 60 percent of the state highway system will be in poor condition by 2016.

    The downward spiraling effects of a highway and bridge system in poor condition are staggering. It is estimated that the cost to rebuild a roadway in poor condition is 8 to 10 times more expensive than to maintain a roadway in good condition. Driving on roads in need of repair costs Colorado’s motorists nearly $1 billion or over $300 per driver – annually in extra vehicle operating costs, and increased fuel consumption. In addition to the effects of deteriorating roads and bridges, increased congestion and related business opportunity loss, negative tourism impacts, and rough roads result in higher fuel costs. Full scale vehicle test track research has found that a 10 percent reduction in roadway smoothness results in a 4.5 percent reduction in vehicle miles/gallon. To compound the problem, the idea of suspending the Federal Motor Fuel Tax from Memorial Day to Labor Day would cost the state of Colorado approximately $100 million in much needed transportation funds and roughly the loss of 3,000 construction related jobs.

    Tough decisions will be made at the Capitol regarding the allocation of the current state dollars and the potential for additional funding sources. However, the facts are clear – any delay in finding a sustainable funding source for highway improvements will be postponing the inevitable and potentially devastating to a state whose transportation system is teetering on the brink of disaster.

    Thomas Peterson is the executive director of the Colorado Asphalt Pavement Association (CAPA). CAPA is the statewide trade association representing the users and producers of the 10 million ton asphalt pavement industry of Colorado. For more information, visit -asphalt.com.

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