Video: Rising gas prices threaten state road projects

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This week, Washington's gas tax went up another cent-and-a-half per gallon. That is the third and last increase we'll see as part of legislation passed three years ago.

You'd think that means more money for state highway projects, but guess again. The high price of gas is threatening to put road projects on the chopping block.

The price of gas may have skyrocketed to over four dollars a gallon, but the gas tax doesn't keep pace. What you pay in gas tax is simply based on how many gallons you buy. And people are buying fewer gallons. Driver behavior is changing: people are driving less, combining trips, driving their smallest car, even cutting back in other ways.

"I'm driving less on vacation while I'm out here," said Ed Scheafer, vacationer.

"I probably drive about 10 to 15 percent less," said John Pales, motorist.

Mostly because of the gas tax, money flowing to the Department of Transportation is now down $77 million from projections, or 2%.

If this keeps up, the next two year budget forecast calls for another $137 million loss.

"We're probably going to go back to the Legislature and ask them to delay some things," said Paula Hammond, Secretary of Transportation.

Hammond says some big unstarted projects could end up on hold, while simpler maintenance items like re-paving jobs are likely to be put off first.

"We'll be talking a lot about what we do and what we don't do," said Hammond.

With yesterday's increase, Washington's gas tax stands at 37.5 cents a gallon. 9.5 cents passed in 2005; 5 cents passed in 2003, both to try and battle congestion, with a base rate of 23 cents a gallon.

But Hammond is already thinking beyond the gas tax.

"And we have to have the nerve and the guts to step forward and say it's going to be something else," said Hammond.

The department continues to look at more tolling options. More and more Hammond and her colleagues in other states are even discussing drivers paying some sort of tax based on the number of miles they drive.

Hammond says big road projects being paid for by the gas tax increases are protected to some degree, but even there the money is going down.