Funding and Finance

Budgeting and Appropriations

Biennial enactment of two 12-month budgets; fiscal year begins July 1. The governor approves the NHDOT budget.

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): $286.5 million
FY 2010: $277.1 million
FY 2009: $258.0 million
FY 2008: $247.9 million

Allocation of Federal Transportation Funds to the DOT

Federal transportation funds are allocated to NHDOT as a state legislative appropriation as a lump sum to the agency.

Allocation of State Transportation Funds to the DOT

State transportation funds are allocated to NHDOT as a state legislative appropriation at the program or category level.

Traditional State Funding and Finance for Highways

Fuel taxes; vehicle registration/license/title fees; truck weight fees; tolls; interest income; general obligation bonds; revenue bonds (for turnpikes only). A surcharge on registration fees will sunset in June 2011.

State Funding and Finance for Other Modes

Transit and rail: General funds; bonds; Highway Fund. Ports: Other funds and fees.

Innovative Transportation Funding and Finance

GARVEE bonds (authorized but not used as of 2009); Build America Bonds; design-build (authorized in statute); advance construction; toll credits or "soft match."

Dedicated/Restricted State Funds and Revenues

The state constitution restricts use of revenues from any charges or taxes on the operation of motor vehicles or the sale or consumption of motor fuel to the construction, reconstruction and maintenance of public highways, including traffic supervision, and prohibits diversion of these revenues to any other purpose (N.H. Const, part II, art. 6-a). The restrictions are on the revenues that feed the highway fund, rather than on the fund itself.

DOT Authorized to Retain Surplus Funds

Yes, NHDOT is authorized to retain excess funds.

Legislative Approval Required to Move Funds Between Projects

No legislative approval is required.

Transportation Funding Allocations through Local Aid

Local aid is generally allocated by the commissioner of transportation. State statute requires at least 12 percent of fuel tax and motor vehicle fee revenue to be allocated to the local highway aid fund, which is distributed to cities, towns and unincorporated places by a statutory formula based on population and class IV and V highway mileage. An additional amount is allotted to municipalities by a statutory formula based on population and valuation (N.H. Rev. Stat. Ann. §235:23). A portion of fuel tax revenues is distributed to highway districts through the highway and bridge betterment program, by a statutory formula based on class I, II and II highway and highway bridge mileage (N.H. Rev. Stat. Ann. §235:23-a). A city or town may apply to the commissioner for discretionary state aid for class I, II or III highway projects; a local match is required (N.H. Rev. Stat. Ann. §§235:10 et seq.). The state also allocates transportation funds to local entities through state legislative appropriations.