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I mentioned this six months ago when the rise in gas reached $4.00. People started driving a lot less and most DOT's are heavily funded by the tax on gasoline. We saw an immediate impact in Oklahoma.
Funding Running out for Projects
Yesterday, ODOT reported that within the next 30 days they will run out of money and stop funding any more projects. And with the drop in revenue then they said that they will also be slow in paying for existing projects.
Our infrastructure is falling apart acros the US and this is not a good sign. Many on this board have taken a huge hit with the housing slump but if I was into construction big time then I'd start watching this very closely.
Especially if I did a lot of state highway and bridge projects.
With the price of gas locally still around $3.80p then raising the taxes on gas would be a very hard thing to push at this time.
I will still stick with my feelings that high prices are good for us in that it is starting to kick start other alternatives that were not economically viable when gas was $2.00 a gallon.
If you drive a lot of hubs then you need to start watching this at the state level. It will quickly impact city and country projects that rely on state and federal funding.
It's a beautiful morning in Stillwater.
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