Intergovernmental Funding of Surface Transportation
AUGUST 2014
Takeaways
• Surface transportation funding system is interconnected.
• Real overall spending has declined. • Federal and state governments rely heavily on declining fuel tax revenues.
• Common funding challenges and interconnection call for dialogue across all levels of government.
All Levels of Government Fund Highway and Transit Own-source spending by level of government, 2007-11 annual average
25%
40%
36%
Federal $51 billion
State $82 billion
Local $74 billion
Source: Pew analysis of U.S. Census Bureau, 2007-2011 Annual Survey of State and Local Government Finances.
OWN SOURCE REVENUE
The Surface Transportation Funding System FY 2011 Expenditures
$58 Billion
Federal Government
$1 Billion $46 Billion $103 Billion
State Government
$80 Billion $11 Billion
$73 Billion
Own source flows
$23 Billion
Local Government
Intergovernmental transfers
$107 Billion
Direct spending on projects
Source: Pew analysis of U.S. Census Bureau, 2011 Annual Survey of State and Local Governments. Numbers may not add up due to rounding.
Size of Federal Role Within Each State Varies Federal share of total surface transportation expenditures, FY 2007-2011 Federal Share, National Average 24%
Less than 22% 22% - 24% 25% - 29% 30% - 34% 35% or greater
Note: Map does not include direct federal spending on transportation, which cannot be broken out by state.
Source: Pew analysis of U.S. Census Bureau, 2007-2011 Annual Survey of State and Local Government Finances.
Highway Trust Fund Faces Growing Shortfalls Actual and projected revenue and outlays 70 60
Billions of dollars
50
Transfers from general fund Revenues Outlays End-of-year balance
40 30
20 10 0
Notes: Numbers are not adjusted for inflation.
Source: Pew analysis of Congressional Budget Office and Federal Highway Administration data.
Federal and State Highway and Transit Expenditures are Falling Expenditures by level of government, inflation-adjusted $120 State
$100
Billions of 2011 dollars
$100.2 $79.8
$80
Local
$77.7
$73.0
$60
$57.0 $59.3 Federal
$40
$43.6 Recovery Act
$20
$0 2002
2003
2004
2005
2006
2007
2008
2009
Notes: Inflation-adjusted using Bureau of Economic Analysis' price index for state and local government investment in structures (Table 3.9.4, Line 36). Years are in state fiscal years. Source: Pew analysis of U.S. Census Bureau, 2002-2011 Annual Survey of State and Local Government Finances.
2010
2011
Both Federal and State Governments Reliant on Fuel and Vehicle Taxes Funding resources used for highways by level of government, 2012 100% 90%
7%
13%
19%
18%
14%
80%
70%
12%
13% 6%
60%
11%
15%
Other taxes, fees, investment income, and other receipts Property taxes General fund
50%
21%
40% 30%
Bond proceeds
66%
20%
Tolls 47%
31%
10%
Vehicle tax Fuel tax
3% 4%
0% Federal
State
Local
Note: Local vehicle tax revenue include a small amount of fuel tax revenue as well. Federal revenues are in federal fiscal years, state and local revenues are in their own fiscal years or calendar years, depending on how they report their data to FHWA. Source: Pew analysis of Federal Highway Administration 2012 data (Tables HF-10, SDF, and FE-210). Local data is estimated by FHWA.
Federal and State Governments Face Falling Fuel Tax Revenues Federal and state fuel tax revenues, inflation-adjusted 60 State
Billions of 2012 dollars
50 Federal 40 30 20 10 0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Note: Inflation-adjusted using Bureau of Economic Analysis' price index for state and local government investment in structures (Table 3.9.4, Line 36). Federal revenues are in federal fiscal years, state revenues are in state fiscal years (normally July-June) or calendar years, depending on how they report their data to FHWA. Source: Pew analysis of Federal Highway Administration data, Tables FE-210 and SDF.
Takeaways
• Surface transportation funding system is interconnected.
• Real overall spending has declined. • Federal and state governments rely heavily on declining fuel tax revenues.
• Common funding challenges and interconnection call for dialogue across all levels of government.
Ethan Pollack
[email protected]
pewstates.org/fiscal-federalism
