More US States Weigh Gasoline Taxes

Tight state budgets and jammed roadways this year are prompting some U.S. state governments to make one of the most politically unpopular moves imaginable: raising gasoline taxes.

Because they hit everyone, gas taxes are widely disliked and rarely increased. But after decades of underinvestment in roads, bridges and public transport, states face heavy infrastructure costs and lack the money to handle them.

Wyoming was the first to make the leap this year, raising its tax to 24 cents per gallon from 14 cents on Feb. 15. It was the first increase in the state's gasoline tax in 15 years.

Governors in Michigan, Pennsylvania, Maryland and Vermont have proposed raising fuel taxes, and the New Hampshire legislature will hold a hearing on Thursday on a bill that would phase in a 15-cent-per-gallon increase. Read more >>

For sale: U.S. highways and bridges

The nation's roads are up for sale. But who should have control over them?

State and local governments are in desperate need of cash for all manner of road, building and bridge repair, and are increasingly turning to private money for funding.

But the involvement of private investors is raising concerns over how much control the public may lose over its roadways. Companies putting up the money include construction and engineering firms like Bechtel and Samsung, and big banks like Goldman Sachs and Merrill Lynch that aim to attract money from pension funds and insurance companies.

In exchange for the funding, the firms are getting an ownership stake in the projects. That means they'll get a cut of the tolls, and also be responsible for the maintenance. The arrangement has some people nervous. There is a fear that governments are losing some control of the roadways. If the maintenance doesn't get done, what recourse do they have to force the private firms to act? Read more >>