State lawmakers face a critical challenge when they consider funding for transportation programs in their jurisdiction. How can they provide enough money to support a safe, efficient, reliable and effective transportation system when the money available for transportation has become more uncertain and transportation needs continue to grow?
This report provides detailed information about transportation funding options for state legislatures.
• The initial chapter makes the case for transportation funding by providing information about travel trends, the effects of growth on the transportation network, congestion, new transportation challenges, and growing transportation funding needs.
• The second chapter explains what states buy with funding for highways and public transportation and analyzes the economic benefits of transportation investments.
• Chapter three details the sources and distribution of surface transportation funding including, federal, state and local contributions.
• The fourth chapter identifies obstacles to transportation funding, including economic conditions, changing consumer preferences, political concerns and legal restrictions.
• Chapter five lists and analyzes options available to state legislatures to raise additional funds for transportation or to leverage existing resources, including potential new revenue sources, procurement tools that can save time and money, bonds and financing mechanisms, and tools to facilitate better state and federal cooperation.
• The sixth chapter examines trends in state transportation funding approaches including greater reliance on public-private partnerships, the increased use of bonding and debt financing and the growth of tolling. Innovative approaches are also mentioned including a vehicle-miles-traveled fee and performance and accountability measures.
• Chapter seven uses a comparative analysis to give states tools to consider revenue sources of which that they have not taken full advantage.
• Chapter eight includes case studies on the Chicago Skyway deal and recent transportation election results.
• Appendices address current state transportation funding programs, current gas tax rates, state legislation on design build and public private partnerships, accountability legislation in the state of Washington, and aggregate state highway revenues.