Conditions and Performance Chapter Listing

Conditions and Performance Home Page

Introduction

Summary

Highway and Bridge Finance

Transit Finance

Summary

Exhibit 6-1 highlights the key highway and transit statistics discussed in this chapter with the values shown in the last report. The first data column contains the values reported in the 1997 C&P report, which were based on 1995 data. Where the 1995 data have been revised, updated values are shown in the second column. The third column contains comparable values, based on 1997 data.

Exhibit 6-1. Comparison of Highway and Transit Finance Statistics with those in the 1997 C&P Report

In 1997, all levels of government spent $101.3 billion for highways and bridges. An additional $5.2 billion was placed in reserves for future highway expenditures, so a total of $106.5 billion of funding was provided by all levels of government for highways in 1997. A total of $25.1 billion was expended for transit in 1997. An additional $0.9 billion was placed in reserve, so a total of $26.0 billion of funding was provided for transit in 1997. Of this total, $8.4 billion came from fare box and other transit system generated revenue; total public funding for transit was $17.5 billion.

Highway expenditures increased 8.3 percent over 1995, while transit expenditures increased 5.5 percent. Highway funding (including amounts placed in reserves) increased 10.6 percent over 1995, while public funding for transit increased 2.9 percent. Highway expenditures grew more quickly than inflation since 1995, increasing 2.0 percent in constant dollar terms. Transit expenditure growth has also outpaced inflation since 1995, but public funding for transit did not keep pace with inflation.

The Federal Government contributed $21.1 billion for highway programs in 1997, and $4.7 billion for transit. This represented 20.8 percent of total highway expenditures, and 27 percent of public funding for transit. The Federal share of highway funding has fallen steadily in recent years, as non-capital expenditures have grown more quickly than capital expenditures traditionally eligible for Federal-aid. After reaching a high of 43 percent in 1980, the Federal portion of transit funding fell steadily until about 1994. Since that time, the Federal portion has rebounded, up to 27 percent in 1997. Most of the Federal funding for highways and transit is in the form of grants to States, local governments, and individual transit operators that make the actual expenditures.

Since 1995, highway capital outlay grew 10.2 percent to $48.7 billion in 1997. Transit capital outlay grew 8.6 percent to $7.6 billion in 1997. The Federal Government contributed $19.8 billion or 41.1 percent of total highway capital outlay, and $4.1 billion, or 54 percent of total transit funding. Federal funding for highway capital outlay has grown at a similar rate as State and local funding in recent years, so the Federal share of highway capital outlay has remained in a range of 41 to 46 percent since 1987. Federal capital assistance for transit remained relatively stable between 1990 and 1994, while the level of State and local contributions increased, so the Federal share of capital funds decreased from 58 to 45 percent over this period. Since 1994, Federal funding for transit capital outlay has increased sharply, so the Federal share has climbed back up to 54 percent.

In 1997, 47.6 percent of highway capital outlay was used for system preservation, down from 50.0 percent in 1995. Of total transit capital outlay, 66 percent was used for rail, down from 70 percent in 1995.

Highway user revenues (the total amount generated from motor fuel taxes, motor vehicle taxes and fees, and tolls) rose 7.0 percent from $84.1 billion in 1995 to $89.9 billion in 1997. Of this total, $64.7 billion (71.9 percent) went for highway programs, $6.6 billion (7.3 percent) went for transit programs, while the remaining $18.6 billion went for other purposes. The $64.7 billion used for highways made up 60.8 percent of total funding for highways. If all highway user revenues had been used for highways, they would have been sufficient to cover 88.6 percent of all highway expenditures. This ratio has declined from 89.9 percent in 1995.