Budgeting and Appropriations | Annual budget; fiscal year begins July 1. |
Bonding or Pay-as-You-Go | Mainly pay-as-you-go financing. A three-year bond program using federal highway bridge funds to pay debt service was authorized, but as of June 2010, the bonds were unissued. In general, since the mid-1990s, Tennessee's highway program has been debt-free. |
State-Level Funding Provided for DOT Budgets | FY 2011 (approved): $868.0 million |
Allocation of Federal Transportation Funds to the DOT | Federal transportation funds are allocated to TDOT as a state legislative appropriation at the program or category level. |
Allocation of State Transportation Funds to the DOT | State transportation funds are allocated to TDOT as a state legislative appropriation at the program or category level. |
Traditional State Funding and Finance for Highways | Fuel taxes; additional sales taxes on gasoline or diesel; vehicle registration/license/title fees; vehicle or truck weight fees. |
State Funding and Finance for Other Modes | Transit: Fuel taxes; vehicle registration/license/title fees. |
Innovative Transportation Funding and Finance | State infrastructure bank (federally capitalized); PPPs (authorized in statute with legislative approval requirements); design-build (authorized in statute); advance construction. |
Dedicated/Restricted State Funds and Revenues | All revenues allocated to TDOT, including a portion of fuel tax receipts, are deposited into the State Highway Fund and distributed according to broad statutory guidelines. The fund is used mainly for highways and transit projects; diversions or transfers are prohibited (Tenn. Code Ann. §67-3-901 and §§54-2-102 et seq.). All revenues from fuels used for railways, waterways and aviation are deposited into the Transportation Equity Trust Fund, and those funds must be used in the same mode of transportation by which they were generated (Tenn. Code Ann. §9-4-207 and §67-6-103). |
DOT Authorized to Retain Surplus Funds | Yes, TDOT retains excess funds. |
Legislative Approval Required to Move Funds Between Projects | No legislative approval is required. |
Transportation Funding Allocations through Local Aid | A portion of state fuel tax funds is allocated to counties and municipalities (Tenn. Code Ann. §67- 3-901). County funds are used for roads, bridges and transit projects by a statutory formula based on equal distribution, population and area. No more than 22.22 percent of county aid funds can be used for transit (Tenn. Code Ann. §54-4-103). A portion of fuel tax funds is allocated to municipalities for street aid by a statutory formula based on population (Tenn. Code Ann. §54-4-203). Funds are distributed by the commissioner of finance and administration. |