| Budgeting and Appropriations | Annual budget; fiscal year begins October 1. ALDOT spending levels are set by the Legislature in the annual appropriation act. |
| Bonding or Pay-as-You-Go | The state mainly uses pay-as-you-go financing, but has done a small amount of bonding over the years. |
| State-Level Funding Provided for DOT Budgets | FY |
| Allocation of Federal Transportation Funds to the DOT | The Legislature appropriates federal funds in the annual appropriation act as a lump sum appropriation at the department level. The Joint Transportation Committee also approves the long-range highway plan, including the use of federal funds. |
| Allocation of State Transportation Funds to the DOT | The Legislature appropriates state transportation funds in the annual appropriation act as a lump sum appropriation at the agency level. |
| Traditional State Funding and Finance for Highways | Fuel taxes; vehicle registration/license/title fees; truck weight fees; outdoor advertising permit fees. The state has done a small amount of bonding over the years. |
| State Funding and Finance for Other Modes | Constitutional limits on use of vehicle taxes and fees prohibit use of any currently levied state taxes for transit. Attempts to change the constitution to allow funds to be used for transit have been unsuccessful. Aviation: Aviation fuel tax. Ports: Alabama State Docks fees and self-generated revenue. Bridges: The Public Road and Bridge Fund, including state fuel tax, vehicle registration and other miscellaneous ALDOT revenues. |
| Innovative Transportation Funding and Finance | GARVEE bonds; PPPs (authorized in statute, used for Foley Beach Express); design-build (authorized in statute); impact fees; advance construction. |
| Dedicated/Restricted State Funds and Revenues | The state constitution limits the use of any state revenues from fees or taxes on registration, operation or use of vehicles or on motor fuel to the construction, maintenance and repair of roads and bridges and enforcement of the state's traffic laws (Ala. Const, art. IV, §111.06). State highway bond proceeds and revenues appropriated to ALDOT are deposited in the State Highway Fund, use of which is restricted to transportation purposes (Ala. Code §23-1-62). |
| DOT Authorized to Retain Surplus Funds | Yes. |
| Legislative Approval Required to Move Funds Between Projects | No legislative approval required. |
| Transportation Funding Allocations through Local Aid | Transportation funds are distributed to counties, towns and municipalities based on statutory formulas. The gasoline tax is the biggest contributor of local transportation funding. Fifty-five percent of net gasoline tax proceeds and a portion of the supplemental net tax proceeds on gasoline are allocated to counties and municipalities to be used for highway purposes. These funds are distributed among the counties by a statutory formula based on equal distribution and population, and 10 percent of the amount allocated to each county must be distributed among its municipalities based on population (Ala. Code §§40-17-73 et seq.). A small portion of the diesel and motor carrier fuel tax is also distributed to counties and municipalities for public road and bridge purposes by statutory formulas based on equal distribution and population (Ala. Code §40-17-222). These allocations to local governments are subject to constitutional restrictions on the use of revenues from fees or taxes on registration, operation or use of vehicles or on vehicle fuel (Ala. Const, art. IV, §111.06). |