HIGHWAY TRUST FUND. HOW ARE PUBLIC PROJECTS FUNDED? General Fund Generated by general revenues Bonds...
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Transcript of HIGHWAY TRUST FUND. HOW ARE PUBLIC PROJECTS FUNDED? General Fund Generated by general revenues Bonds...
Highway Trust Fund
How are Public Projects Funded?
• General Fund• Generated by general revenues
• Bonds• Usually by referenda
• User Fees• Pay as you go
Beginnings (Interstate)
• Federal Aid Highway Act (1956)• Authorized Interstate Highway System• Federally funded infrastructure• Public Works• Public Benefits
Beginnings (HTF)
• Established by Highway Revenue Act 1956• Highway Account (other accounts added later)
• Transit Account• LUSTT fund• General Account
• All of this is meant as a user fee• Mechanism: Gas Tax
Goals
• Create a self-funding mechanism• Originally targeted just towards highways• Transit now a beneficiary
• Political
Cause: Less Driving, Increased Fuel Efficiency
Determination of Apportionments
• Interstate Construction• Interstate Maintenance• NHS• Bridge• Surface Transportation Program• Interstate Substitution
Program Categories Equity Adjustments
Determination of Apportionments
• Minimum Allocation• CMAQ• Donor State Bonus• Interstate Reimbursement• Hold Harmless• 90% Payment Adjustment• Metropolitan Planning
Apportionment Categories
• Surface Transportation Program• Most flexible program
• 10% highway railway crossings• 10% transportation enhancements• 50% obligated in urban areas• 30% obligated anywhere else in state
Apportionment Categories
• CMAQ• Congestion Mitigation and Air Quality• Programs designed to bring metro areas into attainment
• Transit• HOV• Ridesharing
Apportionment Categories
• Interstate Substitution• Funds used by FTA to create a transit substitute for
Interstate Highway usage• Rights of way• Fixed guideways• Bus Lanes
Equity Adjustments
• Minimum Allocation• Guarantee to each state• Receives at least 90% of state’s estimated contributions
to HTF• May be used for
• Interstate Maintenance & Substitute• Bridge• NHS• Surface Transportation Program• CMAQ
Equity Adjustments
• Donor State Bonus• Starts: state with lowest return (in percent)• State brought up to the level of the next lowest state• Continue until authorized funds are exhausted
Equity Adjustments
• Interstate Reimbursement• Provides funding to states based on each state’s share of
the cost of Interstate segments built without federal assistance
• State’s share of national authorization predetermined by ISTEA/TEA21
Equity Adjustments
• Hold Harmless• An established percentage of available national funding
for highway federal aid in each state• No state will receive less than it did under
• Previous legislation• Previous apportionments
Equity Adjustments
• 90% Payment Adjustment• Every state is guaranteed to receive at least 90% of
every dollar it is estimated to have contributed to the Highway Account of the HTF