Local governments-including counties, townships and municipalities49-provide approximately 30 percent of total surface transportation funding and own 77 percent of the nation's roadway miles.50 Both legislatures and DOTs participate in supporting local governments in their responsibilities for transportation infrastructure through local aid programs. Through these programs, states typically allocate a portion of state fuel tax proceeds or other state transportation revenues to local entities for transportation projects. States also suballocate federal funds to local entities.
The most common model, reported by 27 states,51 is to distribute funds primarily by statutory formulas based on equal distribution, population, road mileage or other criteria (see State Profiles). Nineteen other states52 report distributing funds using a blend of statutory formulas and state legislative appropriations; of these, 11 also provide grants or other funds at the discretion of the DOT or a transportation commission. These discretionary programs, particularly when combined with appropriations, can provide for substantial involvement of both the executive branch and the legislature in distributing funds to local entities.
∙ In New Jersey, local aid is allocated by the commissioner of transportation, pursuant to annual legislative appropriations and subject to statutory minimums. Aid is allocated based on statutory formulas, then the commissioner determines the priority for funding projects based on certain criteria.
∙ The New Mexico DOT distributes most local aid by statutory formula, but has discretion over some allocations to local governments in financial hardship.
∙ The South Carolina DOT allocates a portion of federal funds received each year to metropolitan planning organizations and councils of government; this allocation is not required by statute. The commission of the DOT determines the funding amount and has established the distribution formula. A portion of state motor fuel tax revenue also is distributed to counties according to a statutory formula.
∙ Washington distributes a portion of certain transportation revenues to cities and counties by statutory formula. In addition, the DOT awards certain public transportation grants to local entities through a regional mobility grant program-funded by the multimodal transportation account and subject to appropriation-for cost-effective projects that reduce delay and improve connectivity.