FINANCING THE HIGHWAY NEEDS OF INDIANA

A STUDY WAS CONDUCTED TO INVESTIGATE THE FINANCING OF INDIANA'S FUTURE HIGHWAY NEEDS BETWEEN 1966 AND 1985 AS DETERMINED BY THE 1967 INDIANA HIGHWAY NEEDS STUDY. THE FOLLOWING FOUR OBJECTIVES DIRECTED THE SCOPE OF THE INVESTIGATION TO: (1) CLEARLY EXAMINE POSSIBLE SOURCES OF REVENUE BOTH FROM THE HIGHWAY USER AND THE GENERAL PUBLIC AND DETERMINE THE FEASIBILITY OF THEIR APPLICATION TO HIGHWAY NEEDS FINANCING, (2) ASSESS THE CURRENT THEORETICAL VIEWPOINTS ON THE HIGHWAY FINANCING ISSUE AS THEY PERTAIN TO QUESTIONS OF INVESTMENT, PRICING AND TAXATION EQUITY, (3) ESTABLISH CRITERIA FOR THE DISTRIBUTION OF STATE COLLECTIVE REVENUES AMONG LOCAL UNITS OF GOVERNMENT, AND (4) ESTABLISH THE YEARLY NEEDS AND REVENUES FOR THE STATE, COUNTY, AND CITY AND TOWN LEVELS OF GOVERNMENT AND DETERMINE THE NECESSARY REVENUE INCREASES FOR ELIMINATION OF THE BACKLOG NEEDS. THE GENERAL THEORIES OF HIGHWAY FINANCE AND TAXATION ARE DISCUSSED, WITH SPECIFIC REFERENCES TO THE COST ALLOCATION QUESTION AND THE ISSUE OF MARGINAL VERSUS AVERAGE COST PRICING. AN APPRAISAL WAS MADE OF THE MERITS AND DRAWBACKS OF THE DEBT FINANCING POLICY. AN ANALYSIS IS PRESENTED OF THE DISTRIBUTION OF HIGHWAY FUNDS AMONG LOCAL GOVERNMENT UNITS, BOTH AS USED BY OTHER STATES AND AS MIGHT BE USED BY INDIANA. REPRESENTATIVE MEASURES OF NEEDS DEFICIT WERE DETERMINED USING A STEPWISE LINEAR REGRESSION ANALYSIS, PERFORMED ON MANY SYMPTOMATIC FACTORS PRESENTLY USED IN INDIANA AND IN OTHER STATES. THE PROGRAMMING OF FUTURE HIGHWAY REVENUES NECESSARY TO FINANCE THE NEEDS IS DISCUSSED AND PRESENTED IN THE FORM OF A NO-CHANGE PROGRAM, A PAY-AS-YOU-GO PROGRAM, AND A SHORT TERM CATCH-UP PROGRAM.

  • Supplemental Notes:
    • No 6, 214 PP, 30 FIG, 29 TAB, 67 REF, 2 APP
  • Corporate Authors:

    Purdue University/Indiana Department of Transportation JHRP

    Purdue University, School of Civil Engineering
    West Lafayette, IN  USA  47907-1284
  • Authors:
    • Michael, H L
    • Metcalfe, J A
  • Publication Date: 1969-2

Subject/Index Terms

Filing Info

  • Accession Number: 00200977
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Sep 2 1994 12:00AM