Funding and Finance

Budgeting and Appropriations

Annual budget; fiscal year begins July 1. The General Assembly holds detailed biennial and summary annual budget hearings. Special language in the AHTD's annual appropriation act requires quarterly reporting of the agency's financial activities.

Bonding or Pay-as-You-Go

Combination of bonding and pay-as-you-go financing

State-Level Funding Provided for DOT Budgets

FY
2011 (approved): $498.4 million FY
2010: $447.6 million FY
2009: $423.9 million FY 2008: $424.8 million

Allocation of Federal Transportation Funds to the DOT

Federal transportation funds are allocated to the AHTD through a state legislative line-item appropriation.

Allocation of State Transportation Funds to the DOT

State transportation funds are allocated to the AHTD through a state legislative line-item appropriation.

Traditional State Funding and Finance for Highways

Fuel taxes; vehicle registration/license/title fees; truck weight fees; interest income; revenue bonds.

State Funding and Finance for Other Modes

Transit: 75 percent of rental vehicle sales taxes are deposited into a trust fund to be used for public transit programs. Transit also is funded by general funds (around 10 percent) and interest income. Rail: Ad valorem tax. Aviation: Sales and use tax on aviation fuel, services and parts.

Innovative Transportation Funding and Finance

GARVEE bonds; state infrastructure bank (federally capitalized); PPPs (authorized for counties in statute); design-build (authorized in statute); impact fees.

Dedicated/Restricted State Funds and Revenues

State statute dedicates fuel tax revenues to the purposes of constructing, widening, reconstructing, maintaining, resurfacing and repairing the public highways, and retiring highway indebtedness (Ark. Stat. Ann. §26-55-206). The State Highway and Transportation Department Fund, Department of Aeronautics Fund and Public Transit Trust Fund are designated special revenues to be used for the purposes collected (Ark. Stat. Ann. §19-5-1126, §27-70-207 and §27-115-110).

DOT Authorized to Retain Surplus Funds

Yes. Fund balances remain in most AHTD funds, since they are special revenues to be used for the purpose authorized.

Legislative Approval Required to Move Funds Between Projects

No.

Transportation Funding Allocations through Local Aid

State funds are distributed 70 percent to the AHTD and 15 percent each to the counties and cities. Funds are distributed to counties by a statutory formula based on area, population, license fees proportion and an equal distribution; funds are distributed to cities by a statutory formula based on population only (Ark. Stat. Ann. §§27-70-206 et seq.).