august 2014
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Intergovernmental Funding of Surface Transportation. AUGUST 2014. Takeaways. Surface transportation funding system is interconnected. R eal overall spending has declined. Federal and state governments rely heavily on declining fuel tax revenues. - PowerPoint PPT PresentationTRANSCRIPT
AUGUST 2014
Intergovernmental Funding of Surface Transportation
Takeaways
• Surface transportation funding system is interconnected.
• Real overall spending has declined.
• Federal and state governments rely heavily on declining fuel tax revenues.
• Common funding challenges and interconnection call for dialogue across all levels of government.
All Levels of Government Fund Highway and TransitOwn-source spending by level of government, 2007-11 annual average
Source: Pew analysis of U.S. Census Bureau, 2007-2011 Annual Survey of State and Local Government Finances.
Federal$51 billion
25%
State$82 billion
40%
Local$74 billion
36%
Federal Government
State Government
Local Government
$46 Billion
$23 Billion
$1 Billion
$103Billion
$107Billion
$11 Billion
The Surface Transportation Funding SystemFY 2011 Expenditures
OW
N S
OU
RC
E R
EV
EN
UE $58
Billion
$80 Billion
$73 Billion
Own source flows Intergovernmental transfers Direct spending on projects
Source: Pew analysis of U.S. Census Bureau, 2011 Annual Survey of State and Local Governments. Numbers may not add up due to rounding.
Less than 22%22% - 24%
25% - 29%
30% - 34%35% or greater
Size of Federal Role Within Each State VariesFederal share of total surface transportation expenditures, FY 2007-2011
Federal Share, National Average
24%
Note: Map does not include direct federal spending on transportation, which cannot be broken out by state.
Source: Pew analysis of U.S. Census Bureau, 2007-2011 Annual Survey of State and Local Government Finances.
Highway Trust Fund Faces Growing ShortfallsActual and projected revenue and outlays
20002001
20022003
20042005
20062007
20082009
20102011
20122013
20142015
20162017
20182019
20202021
20222023
20240
10
20
30
40
50
60
70
Transfers from general fundRevenuesOutlaysEnd-of-year balance
Billi
ons
of d
olla
rs
Notes: Numbers are not adjusted for inflation.
Source: Pew analysis of Congressional Budget Office and Federal Highway Administration data.
Federal and State Highway and Transit Expenditures are FallingExpenditures by level of government, inflation-adjusted
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011$0
$20
$40
$60
$80
$100
$120
$59.3 $57.0
43.59452375883
$100.2 $79.8
$77.7 $73.0
Billi
ons o
f 201
1 do
llars
Notes: Inflation-adjusted using Bureau of Economic Analysis' price index for state and local government investment in structures (Table 3.9.4, Line 36). Years are in state fiscal years.
Federal
State
Local
Recovery Act
Source: Pew analysis of U.S. Census Bureau, 2002-2011 Annual Survey of State and Local Government Finances.
Both Federal and State Governments Reliant on Fuel and Vehicle TaxesFunding resources used for highways by level of government, 2012
Source: Pew analysis of Federal Highway Administration 2012 data (Tables HF-10, SDF, and FE-210). Local data is estimated by FHWA.
Federal State Local0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
66%
31%
13%
21%
4%
14%
6%
47%
7%
19% 18%
11%
3%
12% 13%
15%
Bond proceeds
Other taxes, fees, investment income, and other receipts
Property taxes
General fund
Tolls
Vehicle tax
Fuel tax
Note: Local vehicle tax revenue include a small amount of fuel tax revenue as well. Federal revenues are in federal fiscal years, state and local revenues are in their own fiscal years or calendar years, depending on how they report their data to FHWA.
Federal and State Governments Face Falling Fuel Tax RevenuesFederal and state fuel tax revenues, inflation-adjusted
Source: Pew analysis of Federal Highway Administration data, Tables FE-210 and SDF.
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
10
20
30
40
50
60
Billi
ons
of 2
012
dolla
rs
Note: Inflation-adjusted using Bureau of Economic Analysis' price index for state and local government investment in structures (Table 3.9.4, Line 36). Federal revenues are in federal fiscal years, state revenues are in state fiscal years (normally July-June) or calendar years, depending on how they report their data to FHWA.
Federal
State
Takeaways
• Surface transportation funding system is interconnected.
• Real overall spending has declined.
• Federal and state governments rely heavily on declining fuel tax revenues.
• Common funding challenges and interconnection call for dialogue across all levels of government.
