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FHWA Home / Policy & Governmental Affairs / 2002 Conditions and Performance

Conditions and Performance

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

Executive Summary
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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

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 6: Finance

Highway and Bridge

Taken together, all levels of government spent $127.5 billion for highways in 2000. The Federal government funded $27.7 billion (21.7 percent). States funded $67.0 billion (52.6 percent). Counties, cities, and other local government entities funded $32.7 billion (25.7 percent).

Total highway expenditures by all levels of government increased 25.0 percent between 1997 and 2000. Highway spending rose faster than inflation over this period, growing 14.4 percent in constant dollar terms.

Of the total $127.5 billion spent for highways in 2000, $64.6 billion (50.7 percent) went for capital outlay. This was the first time this percentage exceeded 50 percent since 1975.

Capital outlay grew by 33.7 percent between 1997 and 2000. Federal funds accounted for $25.8 billion (39.9 percent) of total capital outlay. Large increases in Federal investment under the Transportation Equity Act for the 21st Century were outpaced by even larger increases in State and local investment, as the combined State and local share of funding for capital outlay rose from 58.4 percent in 1997 to 60.1 percent in 2000.

State and local governments devoted a larger share of their capital spending to the preservation of their existing roads and bridges in 2000 than in 1997. The share of capital funds used for system preservation rose from 47.6 percent to 52.0 percent. All levels of government spent a combined $33.6 billion of capital funds for system preservation in 2000; $12.2 billion went for new roads and bridges; $13.7 billion went for adding new lanes to existing roads; and $5.1 billion went for system enhancements, such as safety, operational or environmental enhancements.

Highway-user revenues-the total amount generated from motor-fuel taxes, motor-vehicle fees, and tolls-were $100.6 billion in 2000. Of this, $81.0 billion (80.5 percent) was spent on highways. This represented 62.9 percent of the total revenues generated by all levels of government in 2000 for use on highways.


In 2000, $30.8 billion was available from all sources to finance public transportation investment and operations. Public transportation funding comes from: public funds, allocated by Federal, State, and local governments; and system generated revenues earned [by transit agencies] from the provision of transit services. In 2000, Federal funds accounted for 17 percent of all public transportation revenue sources, State funds for 18 percent, local funds for 33 percent, and system generated funds for 32 percent.

Eighty percent of Federal funds allocated to public transportation are from a dedicated portion of the Federal motor fuel tax and 20 percent are from general revenues. Federal funding for public transportation in constant 2000 dollars increased by 12.3 percent between 1999 and 2000, compared with a 2.4 percent increase between 1998 and 1999.

In 2000, total capital expenditures on public transportation were $9.1 billion dollars. Federal capital assistance was $4.2 billion dollars, accounting for 47 percent of this amount. Between 1990 and 2000, Federal funding for capital investment grew at an average annual rate of 4 percent, while funding from State and local governments, grew at a 9 percent average annual rate. State and local funding now accounts for a higher percentage of total capital investment expenditures.

In 2000, 58 percent of capital spending was for facilities, 31 percent for rolling stock, and 11 percent for other capital, an almost identical allocation as in 1997.

Operating expenses for transit totaled $20.0 billion in 2000. As in 1997, about 50 percent of operating expenses was for vehicle operations, 30 percent for vehicle and non-vehicle maintenance, and 20 percent for administrative expenses and purchased transportation. Bus operations accounted for 55 percent of operating expenditures in 2000 ($11.0 billion), heavy rail operations for 20 percent ($3.9 billion), and commuter rail for 13 percent ($2.7 billion). From 1997 to 2000, operating expenses for demand response vehicles increased by 21 percent, for light rail by 26 percent, for bus operations by 13 percent, for commuter rail by 18 percent and for heavy rail by 13 percent.

Page last modified on November 7, 2014
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