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The federal Highway Trust Fund, which funds road construction with gas taxes, faces a $3.1 billion shortfall in fiscal year 2009 because drivers are buying less gas. Peters plans to unveil a plan in Atlanta today that will “refocus, reform and renew” the government”s approach to transportation funding. Motor vehicle deaths plummeted 22% in March and 18% in April, while gas sales decreased about 3% and 1% and estimated miles driven fell roughly 4% and 2% for each of those months. What kind of goods are gasoline and road deaths? How might this impact how we evaluate increases in gasoline prices?
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