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AUGUST 2014

Intergovernmental Funding of Surface Transportation. AUGUST 2014. Takeaways. Surface transportation funding system is interconnected. R eal overall spending has declined. Federal and state governments rely heavily on declining fuel tax revenues.

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AUGUST 2014

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  1. Intergovernmental Funding of Surface Transportation AUGUST 2014

  2. 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.

  3. All Levels of Government Fund Highway and TransitOwn-source spending by level of government, 2007-11 annual average Source: Pew analysis of U.S. Census Bureau, 2007-2011 Annual Survey of State and Local Government Finances.

  4. The Surface Transportation Funding SystemFY 2011 Expenditures Federal Government $1 Billion $58 Billion $46 Billion $103 Billion State Government OWN SOURCE REVENUE $80 Billion $23 Billion $11 Billion Local Government $107 Billion $73 Billion Own source flows Direct spending on projects Intergovernmental transfers Source: Pew analysis of U.S. Census Bureau, 2011 Annual Survey of State and Local Governments. Numbers may not add up due to rounding.

  5. Size of Federal Role Within Each State VariesFederal 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.

  6. Highway Trust Fund Faces Growing ShortfallsActual and projected revenue and outlays Source: Pew analysis of Congressional Budget Office and Federal Highway Administration data.

  7. Federal and State Highway and Transit Expenditures are FallingExpenditures by level of government, inflation-adjusted Recovery Act Source: Pew analysis of U.S. Census Bureau, 2002-2011 Annual Survey of State and Local Government Finances.

  8. Both Federal and State Governments Reliant on Fuel and Vehicle TaxesFunding resources used for highways by level of government, 2012 Source: Pew analysis of Federal Highway Administration 2012 data (Tables HF-10, SDF, and FE-210). Local data is estimated by FHWA.

  9. Federal and State Governments Face Falling Fuel Tax RevenuesFederal and state fuel tax revenues, inflation-adjusted Source: Pew analysis of Federal Highway Administration data, Tables FE-210 and SDF.

  10. 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.

  11. Ethan Pollack epollack@pewtrusts.org pewstates.org/fiscal-federalism

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