Feds cash shortfall worries PennDOT

HARRISBURG — State Transportation Secretary Allen D. Biehler, P.E., said recently that a shortfall in the federal Highway Trust Fund poses a threat to the state’s bridge and highway program and Congress needs to act quickly to address the problem. “Everyone had been warned of this approaching Highway Trust Fund imbalance and the impact could be severe if not corrected,” Biehler said. “We are still assessing the magnitude of potential changes to our highway and bridge program.” U.S. Transportation Secretary Mary Peters announced in Washington that, beginning this month, the federal government will start taking cash management steps to protect the solvency of the highway account in the trust fund. The account’s balance has dropped from $4.2 billion at the end of July to less than $1.4 billion at the beginning of September. The account is projected to incur a deficit of $3.3 billion in federal fiscal year 2009, which begins Oct. 1.