While revenue to the Highway Trust Fund is projected to increase by 5.4% in FY 2005, estimates by the Congressional Budget Office indicate a steadily declining rate of increase over the next decade.
The CBO estimates that the Highway Account of the Highway Trust Fund had a beginning-of-the-year balance of $12.9 billion, which will decline to $9.4 billion by the end of the year because receipts of $29.5 billion will be exceeded by outlays of $33 billion. Income to the Trust Fund will steadily increase through FY 2014, the CBO states, reaching an annual level of $40 billion by that time.
The income to the Highway Trust Fund for FY 2004 is almost $1.3 billion higher than that projected by the CBO in August of last year as a result of an upturn in the national economy.
However, the CBO's out-year projections warn that the Highway Trust Fund could go into the red in FY 2008 if FY 2004 funding levels continue with an adjustment for inflation, and no new revenue is directed to the trust fund.
