Furthermore, less than half of the current federal gasoline tax revenues collected are actually spent improving roads or highways. Legislators should phase out the federal gasoline tax and allow states the flexibility to fund roads and highways more effectively and efficiently. Federal and state legislators should end restrictions on the privatization of public roads. Not only do private investors have more freed-up capital than the public sector with which to build, maintain, and operate facilities, they are more willing and able to innovate in order to improve both efficiency and service on the road. California has already passed legislation allowing for the private funding and management of state roads and highways, and should push for similar legislation applying to federal highways.
Current law prohibits privatization or tolls on the federal highway system.
Localities should install electronic toll facilities such as those used on the SR 91 Express Lanes. With such technology, variable tolls can be collected easily and without the delay of stopping to manually pay a toll. The California state legislature should reduce or phase out the state gasoline tax and vehicle registration fees. These fees are mislabeled as user fees, and are less efficient and less equitable than congestion fees. As more and more electronic toll facilities are installed, the other fees can be continually reduced until roads are funded by congestion fees alone.