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Conditions and Performance


Status of the Nation's Highways, Bridges, and Transit:
2002 Conditions and Performance Report

Executive Summary
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Index
Introduction
Highlights
Executive Summary
Part I: Description of Current System
Ch1: The Role of Highways and Transit
Ch2: System and Use Characteristics
Ch3: System Conditions
Ch4: Operational Performance
Ch5: Safety Performance
Ch6: Finance

Part II: Investment Performance Analyses
Ch7: Capital Investment Requirements
Ch8: Comparison of Spending and Investment Requirements
Ch9: Impacts of Investment
Ch10: Sensitivity Analysis

Part III: Bridges
Ch11: Federal Bridge Program Status of the Nation's Bridges

Part IV: Special Topics
Ch12: National Security
Ch13: Highway Transportation in Society
Ch14: The Importance of Public Transportation
Ch15: Macroeconomic Benefits of Highway Investment
Ch16: Pricing
Ch17: Transportation Asset Management
Ch18: Travel Model Improvement Program
Ch19: Air Quality
Ch20: Federal Safety Initiatives
Ch21: Operations Strategies
Ch22: Freight

Part V: Supplemental Analyses of System Components
Ch23: Interstate System
Ch24: National Highway System
Ch25: NHS Freight Connectors
Ch26: Highway-Rail Grade Crossings
Ch27: Transit Systems on Federal Lands

Appendices
Appendix A: Changes in Highway Investment Requirements Methodology
Appendix B: Bridge Investment/Performance Methodology
Appendix C: Transit Investment Condition and Investment Requirements Methodology
List of Contacts

Ch 8: Comparison of Spending and Investment Requirements

Highway and Bridge

While this report does not recommend any specific level of investment, a comparison of the investment requirement scenarios with current and projected spending levels provides some insights into the likelihood that the level of performance implied by the scenarios will be obtained.

Federal, State, and local capital expenditures for highways and bridges totaled $64.6 billion in 2000. Capital outlay by all levels of government would have to increase by 17.5 percent above this level to reach the projected $75.9 billion Cost to Maintain Highways and Bridges level. An increase of 65.3 percent would be required to reach the projected $106.9 billion Cost to Improve Highways and Bridges level.


Capital spending by all levels of government grew sharply between 1997 and 2000 and is projected to continue to increase in constant dollar terms from 2000 to 2003, albeit at a slower rate. These projected increases in combined Federal, State and local capital spending would move the Nation closer to the level of the investment requirement scenarios. However, capital outlay would still have to increase 11.3 percent above projected annual spending over this period to reach the Cost to Maintain level, and would need to increase 56.6 percent to reach the Cost to Improve level.

In 2000, 40.1 percent of highway capital outlay went for system expansion, including the construction of new roads and bridges and the widening of existing facilities. The analytical models used to develop the investment requirements in this report suggest that if capital investment increases, it would be cost beneficial to devote a larger share to system expansion to alleviate the effects that future travel growth would have on recurring and non-recurring delay.

For the Cost to Maintain Highways and Bridges, 43.3 percent of the projected 20-year investment requirements are for system expansion. If funding increases above this level, the analysis suggests increasing investment in system expansion, so that for the Cost to Improve Highways and Bridges, 46.7 percent of the total investment requirements are for system expansion.




Transit

Transit capital expenditures from Federal, State, and local governments totaled $9.1 billion in 2000, below the estimated annual investment requirements for the 20-year period from 2001-2020. The annual capital investment necessary to Maintain Conditions and Performance is estimated to be $14.8 billion, 64 percent above actual spending in 2000. The investment required to Improve Conditions and Performance is estimated to be $20.6 billion, 128 percent above actual 2000 capital spending.

These comparisons, however, overestimate the gap between capital investment requirements and future funding for transit capital investment. This overestimation results from the lags that occur between the authorization of capital funds, their obligation and actual capital spending. Since TEA-21, annual obligations by FTA for capital investment have grown rapidly to $7.2 billion in FY 2000 from $4.1 billion in FY 1998, an increase of 76 percent. These higher levels have not yet worked their way through the process into capital spending. As these higher levels of authorized funds are obligated and spent, capital investment will rise and the gap between actual capital spending and estimated annual capital investment requirements will decrease.

To Maintain Conditions and Performance investment in transit vehicles would need to be 117 percent above the $2.8 billion spent in 2000, and investment in non-vehicle assets 40 percent above the $6.2 billion spent in 2000. To Improve Conditions and Performance investment in vehicles would need to be 184 percent above the 2000 amount and investment in non-vehicle assets 101 percent above the 2000 amount.


Projected funding levels, which are based on TEA-21 authorizations, flexible funding estimates and allocations from State and local governments are considerably closer to estimated investment requirements than current capital spending with the gap declining over the duration of the TEA-21 period. By 2003, investment requirements to Maintain Conditions and Performance are estimated to exceed estimated average annual available funding levels by 10 percent, and those to Improve Conditions and Performance by 52 percent.


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Page last modified on November 7, 2014.
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