Transportation funding decisions are becoming increasingly critical as system needs continue to overwhelm the available resources. Governments face the insolvency of the federal Highway Trust Fund, the declining value of the fuel tax and delayed federal surface transportation authorization, making current resources insufficient to meet the demands of aging infrastructure, growing populations, evolving technologies and changing travel patterns.
Each state must address the transportation funding crisis within its unique balance of governmental powers. Overlap and tension between the executive branch and the legislature are nowhere more apparent than in the power of the purse, and each state has a distinctive, dynamic approach to funding and finance issues. In transportation, both legislatures and DOTs (the latter under the direction of governors) have key roles in budgeting and appropriations, selecting investment priorities, and deciding whether to use diverse or innovative financing approaches. This chapter reviews shared responsibilities and interactions between the legislative and executive branches in transportation funding and finance, including in the planning process.