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Adam Wilson expounds on Washington state government, workers and politics. Wilson began covering those issues for the Olympian in 2004. He can be reached at: awilson@theolympian.com.

Oh, good: state picks up fed's tab on highways

• Published September 05, 2008

It's trickle down economics of the bad kind: gas price goes up, people drive less, pay less gas tax, the feds stiff the states for their share of road project costs.

"If we are not fully reimbursed at the federal level, the state will have to pick up the tab," said state Department of Transportation spokesman Lloyd Brown. It adds up to between $33 million and $54 million a month.

Congress is being asked to cough up $8 billion to cover the drop in the highway fund, the Associated Press reports:

WASHINGTON – Transportation Secretary Mary Peters says the federal highway trust fund will run out of money this month.
Peters blames the shortage of funds on the high price of gasoline, which has prompted Americans to drive less. And by driving less, they use less fuel and pay less in federal gasoline tax.
At a midday press conference Friday, Peters said the agency will have to delay payments to state road and bridge projects that the federal government is helping finance.
At the same time, she wants Congress to pass legislation that includes $8 billion to help cover the shortfall.
Four times this year, Republicans in the Senate have blocked a measure that would shore up the fund.

The state is planning to cover the federal share of contract obligations for now, assuming it will be repaid by the federal government in the future, Brown said.

This is while the same forces hurting the federal fund are taking a toll on the state highway fund.

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