THE HIGHWAY TRUST FUND: WHAT'S IN IT FOR CITIES?

ALTHOUGH FEDERAL AND STATE HIGHWAY TRUST FUNDS CURRENTLY PROVIDE VAST SUMS OF MONEY FOR IMPROVEMENT OF TRANSPORTATION SYSTEMS; NOT VERY MUCH OF THE MONEY IS ALLOCATED TO THE CITIES FOR THEIR OWN TRANSPORTATION PROBLEMS. THE NATIONAL LEAGUE OF CITIES (NLC) HAS WARNED THAT LOCAL OFFICIALS WILL NOT CONTINUE TO SUPPORT THE HIGHWAY TRUST FUND UNLESS MORE FINANCING IS PROVIDED FOR THE CITIES. IT IS SUGGESTED THAT THE ANSWER TO SOLVING THE FUNDING OF TRANSPORTATION SYSTEMS IS NOT BY CUTTING OFF THE HIGHWAY TRUST FUNDS, BUT BY WORKING WITH CITY OFFICIALS TO REDIRECT THE HIGHWAY TRUST FUNDS. THE RECOMMENDATIONS ARE (1) IMPLEMENT NEW HIGHWAY USER TAX ALLOCATION FORMULAS WHICH ASSURE THAT URBAN AREAS WILL RECEIVE A SUBSTANTIALLY LARGER PORTION BACK, MORE NEARLY APPROACHING THE USE TAX REVENUE THEY GENERATE. (2) FIX A CEILING ON FUNDS ALLOCATED TO THE INTERSTATE SYSTEM AND PROVIDE THAT FUTURE INCREMENTS IN THE HIGHWAY TRUST FUNDS BE DEDICATED TO IMPROVING URBAN SYSTEMS. (3) USE A MANDATORY FORMULA FOR ALLOCATING REVENUE RETURNED TO THE CITIES FROM THE HIGHWAY USER TAX TO ASSURE A PREDICTABLE LEVEL OF ASSISTANCE SO THAT OFFICIALS CAN ADEQUATELY PLAN THEIR TRANSPORTATION BUDGETS. (4) USE TRUST FUND REVENUES FOR IMPROVEMENT OF A BROAD RANGE OF TRANSPORTATION SERVICES. (5) UPGRADE THE COMPREHENSIVE URBAN TRANSPORTATION PLANNING PROCESSES SO THAT URBAN AREAS WILL HAVE FLEXIBILITY IN PLANNING. /NC/

  • Supplemental Notes:
    • Vol 9, No 7, PP 8-11, 3 TAB, 1 PHOT
  • Publication Date: 1971-7

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Filing Info

  • Accession Number: 00201041
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Mar 27 1972 12:00AM