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Conditions and Performance Report
Chapter 6—Highway, Bridge and Transit Finance

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Highway and Bridge Finance

Transit Finance



The surface transportation system is jointly funded by the Federal, State and local governments, and the private sector. Each level of government has a different role in the operation of the surface transportation system, and different methods for raising revenue. This chapter documents the sources and uses of public funds expended for highways and transit.

The chapter starts with a summary table comparing key highway and transit statistics with the values shown in the last report. The 1995 highway finance data in the 1997 Conditions and Performance (C&P) report included estimates of local government expenditures. These data have been revised to reflect the actual values. The 1997 highway finance data in this report also contain estimates for local government expenditures, and will be revised in the next version of the report. In some cases, the 1995 transit data has been revised as well.

The highway and bridge finance section of this chapter begins with a discussion of the sources of public sector highway funding. The data are broken down by level of government and source of funds, including both 1997 data and an analysis of historical trends. Next is a discussion of the types of highway expenditures currently being made, and trends in current and constant dollar highway expenditures. A more detailed analysis of highway capital expenditures follows, including analyses of the current distribution of capital outlay by functional class and improvement type. The section concludes with a discussion of historic trends in the capital improvement type distribution and the share of capital expenditures funded by the Federal Government.

The transit section begins with a discussion of public funding sources, followed by an analysis of all funding for transit. Next is a discussion of transit capital funding by level of government, and expenditures by mode and type. The section concludes with a discussion of transit operating expenditures, broken down by mode and function.