Over the last 15 years, Congress has consistently increased authorizations for HTF spending. These budget authorizations provide the basis for future obligations (commitments) and outlays (expenditures). Exhibit 2-11 shows that from the first year of the Intermodal Surface Transportation Efficiency Act (ISTEA, 1992) to the final year of SAFETEA-LU (2009), federal highway budget authorizations increased by 46 percent and federal transit budget authorizations increased by 85 percent in 2008 dollars. (Note that a portion of federal transit spending is funded from the General Fund instead of the HTF—about 15-20 percent in recent years.) The apparent 17-year growth largely disappears, however, when adjusted for the increases in vehicle and passenger miles traveled. After accounting for the overall growth | |||
Source: FHWA Fact Sheets on Highway Provisions | in the economy, highway authorizations as a percentage of GDP have decreased by 6 percent since the first year of ISTEA, while transit authorizations have still grown, Put only by 13 percent.25 Recent federal authorizing legislation for surface transportation has provided budget authority for highway and transit programs covering six years at a time. This budget authority, which is | ||
apportioned by formula or otherwise allocated annually to state and local grantees, is subject to annual limitations on the amounts that may be obligated or committed. Subsequent HTF cash expenditures depend on the annual obligation amounts and the rate at which those obligations are liquidated, which is determined by the nature of the activities and projects being funded.
In federal fiscal year 2007, HTF obligations totaled $41 billion for highways and $7.3 billion for transit, for a total of $48.3 billion. FY 2007 HTF cash outlays, resulting from obligations made in FY 2007 and previous years, totaled $39.4 billion: $35.2 billion for highways and $4.2 billion for transit. (These amounts do not include the transit obligations ($1.7 billion) and outlays ($5 billion) supported by the General Fund in FY 2007.)26