The major source of funds for ITD comes from fuel taxes. The federal fuel tax is 18.4 cents a gallon. That currently represents 57 percent of ITD's revenue. The state fuel tax is 25 cents a gallon. The other major source of revenue for the department is vehicle registrations.

Federal revenue remains unchanged: The federal gasoline tax has not increased since 1993, leading to a steady drawdown of the surplus balance in the Federal Highway Trust Fund. Current revenue projections for 2006 through 2011 to the Highway Trust Fund average about $35.8 billion annually, but average projected expenditures from the fund are approximately $39.6 billion annually, a yearly drawdown of about $3.8 billion.

The federal trust fund cannot support the current projected level of spending without an increase in federal fuel taxes.

Once the Highway Trust Fund surplus balance is depleted – most likely in 2009 – expenditures from the fund will be limited to the level of annual revenue added to the fund. This would result in a decrease in anticipated federal highway funding to Idaho of 5 to 10 percent in FY 2010.

Idaho’s fuel tax remains at 25 cents, unchanged since 1996: To keep pace with rising costs, Idaho has periodically adjusted the fuel tax upward, usually by small increments. It has been 11 years since the fuel tax was last adjusted. Listed below are the fuel tax rates from 1976 to present:

• 1976 - 9.5 cents per gallon
• 1981 - 11.5 cents per gallon
• 1982 - 12.5 cents per gallon
• 1983 - 14.5 cents per gallon
• 1988 - 18 cents per gallon
• 1991 - 21 cents per gallon
• 1996 - 25 cents per gallon

The current fuel tax level represents the longest period without an increase since 1965. Idaho’s tax ranks 21st among all states. New York leads the nation at 45.13 cents per gallon. The base cost of registering a car in Idaho has not increased since 1997 and ranges from $24 to $48, depending on the age of the vehicle. Idaho’s vehicle registration fees rank 30th nationally, based on $48 to register a 2006 Toyota Camry. Registering a similar vehicle in Maine, the nation’s leader, costs $435.

Idahoans continue to move toward more fuel-efficient vehicles, further widening the gap between revenue and demand and limiting the department’s ability to make system improvements.

How are state funds distributed?

State funds, which again come primarily from the 25 cent fuel tax and vehicle registrations, are deposited into the highway distribution account. From there:

• Funds for tax administration, railroad crossings, bridge inspection, fuel tax refunds and Parks and Recreation are taken "off the top" before distribution is made
• Local road jurisdictions receive 38 percent
• Idaho State Police receive five percent
• The remaining 57 percent of funding is distributed to the Idaho Transportation Department