1991 STATE HIGHWAY FUNDING METHODS: AN ANALYSIS AND UPDATE

This year's annual report on state highway funding methods is being published at a time when the Bush Administration is proposing greater transportation spending with substantially larger state and local cost sharing, and Congress is debating the reauthorization of the federal-aid transportation program which expires September 30, 1991. Also, the nation's backlog of road and bridge deficiencies is high and traffic in practically every state is increasing. The average state gas tax has increased 95% since 1980. As a result, state and local highway funding during the 1980's increased by 75%, compared to a 64.7% increase in federal highway funding. States are shouldering more and more of the highway funding burden, despite the fact that most states this year faced budget deficits. At least 27 states will consider higher motor-fuel taxes in 1991. Also, 25 states will be studying bonds as a source of revenues, 21 states will look at tolls, and 18 states will consider using state General Funds for highway revenues. Fifteen states will consider local options allowing county and municipality motor-fuel taxes. As states consider ways to generate needed highway repair funds, they also are looking at other needy state programs to fund with highway user fees. This survey found that 44 states diverted $4.34 billion in transportation revenues away from needed improvements during 1990. Those diverted transportation funds went to state programs varying from arts and aeronautics to tourism and wildlife. In 1991, 24 states are expected to consider measures that would divert even more highway dollars to non-highway purposes. In addition to highway revenue diversions, the federal and state governments lost more than $500 million because of tax exemptions for gasohol.

  • Corporate Authors:

    Road Information Program

    1200 18th Street, NW
    Washington, DC  United States  20036
  • Publication Date: 1991-5

Media Info

  • Features: Figures; Tables;
  • Pagination: 44 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00610161
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jun 30 1991 12:00AM