Highway construction drops in July

The latest U.S. Census Bureau construction report indicates highway and street construction is slowing, and Ken Simonson, Chief Economist for The Associated General Contractors of America, says that problems with the Highway Trust Fund are looming on the horizon. Highway and street construction, which received a boost in late 2005 and early 2006, was down 0.8 percent in July and is only 5 percent higher year-to-date. Partly, that reflects lower prices for diesel and asphalt, but it also shows states are running short of highway funds as gas tax receipts slow. "Highway spending could drop sharply late next year," Simonson warned. "Last week, the Congressional Budget Office projected a $5 billion deficit in the federal Highway Trust Fund's Highway Account in fiscal year 2009, which begins in just 13 months. Congress will need to bridge that gap in order to keep road spending from plunging." Your comment?