What Has The Govt Spent Money On Building

State and Local Backgrounders Homepage

Spending on highways and roads includes the functioning, maintenance, and construction of highways, streets, roads, sidewalks, bridges, and other related structures.¹ This category includes both regular highways and price highways.

• How much exercise land and local governments spend on highways and roads?
• How does state spending differ from local spending and what does the federal government contribute?
• How accept highway and route expenditures changed over time?
• How and why does spending differ across states?

How much do state and local governments spend on highways and roads?

In 2019, land and local governments spent $203 billion, or half-dozen pct of direct general spending, on highways and roads.² As a share of state and local direct general expenditures, highways and roads were the fifth-largest expenditure in 2019.

In 2019, 42 per centum of highway and road spending went toward operational costs, such every bit maintenance, repair, snowfall and ice removal, highway and traffic design and operation, and highway rubber. The other 58 pct went toward capital spending, such every bit the construction of both highways and roads.

This operational-upper-case letter divide stands in stark dissimilarity to other major land and local spending categories, where capital spending typically accounts for 10 percent or less of total straight spending. Since 1977, uppercase spending has consistently been between 50 per centum and threescore percentage of state and local highway and road spending.

How does state spending differ from local spending and what does the federal government contribute?

Spending on highways and roads is roughly carve up between country and local governments. In 2019, states provided 62 percent of highway and road spending while local governments provided 38 percentage. State spending is typically for highways and tollways, whereas local governments spend more money on local streets and roads.

Direct spending on highways and roads as a share of total spending in 2019 deemed for viii percentage of state directly general expenditures and 4 percent of local direct general expenditures.

In 2017 (the virtually contempo year that nosotros have data for these levels of government), direct spending on highways and roads accounted for 8 pct of land spending, 7 percent of county spending, 8 percent of city, thirteen percent of township spending, and three per centum of special district spending.

Both state and local governments dedicate motor fuel tax revenue and highway toll revenue to transportation spending. However, revenue from motor fuel taxes and tolls (even combined) do not contribute a majority of the funds used for highway and road spending.

In 2019, state and local motor fuel revenue enhancement revenue ($52 billion) accounted for 26 percent of highway and road spending while cost facilities and other street construction and repair fees ($22 billion) provided another 11 percent. The residual of the funding for highway and route spending came from country and local general funds and federal funds.

Overall, country and local governments provided three-quarters of highway and road funding ($155 billion) in 2019. Federal transfers for highways and roads were $48 billion dollars in 2019, or 24 percent of all spending. These numbers and percentages will likely change in the coming years with the passage of the Federal Infrastructure Bill in Nov of 2021 which includes $110 billion for roads, bridges, and other major transportation projects.

How have highway and road expenditures changed over time?

From 1977 to 2019, in 2019 aggrandizement-adjusted dollars, state and local government spending on highways and roads increased from $97 billion to $203 billion (108 percent increase). Among major spending programs, this was the everyman level of state and local spending growth over the menstruum. The next-lowest spending growth was for elementary and secondary education (138 percent). (For more than information on spending growth come across our state and local expenditures page.)

The share of country and local spending going to highways and roads also fell over the catamenia, dropping from ix percent in 1977 to six percent in 2019.

How and why does spending differ across states?

Across the United states, state and local governments spent $617 per capita on highways and roads in 2019. Alaska spent the most per capita on highways and roads at $ane,795 per person, followed by North Dakota ($1,624), Wyoming ($1,152), Due south Dakota $1,110), and Vermont ($ane,038). Arizona spent the least on highways and roads at $384 per person, followed past Tennessee ($398), Georgia ($420), Missouri ($422), and South Carolina ($442).

Data: View and download each land'southward per capita spending by spending category

Per capita spending is an incomplete metric because information technology doesn't provide any information about a country'south demographics, policy decisions, or physical size. A country's total spending on highways and roads depends on several factors, including how many drivers are on the route, how many lane miles are in a state, and the usage of public roadways in the state every bit well as payroll, materials, and other costs. States with high per capita spending come from 2 general groups: depression-population states with low population density only large physical size (east.g., Alaska, Northward Dakota, and Wyoming) and places with college traffic volume, which produces higher costs.ⁱⁱⁱ

Further, because highways and roads are capital intensive, spending can change dramatically from year to year depending on whether a upper-case letter project is active in that state. For example, Delaware's real per capita spending shifted from $882 in 2010 to $536 in 2015 to $836 in 2019. Similarly, Wisconsin's real per capita spending bounced from $700 in 2016 to $1,008 in 2017 to $814 in 2019.

Spending per vehicle mile traveled may provide a sense of how much states spend relative to how much their highways and roads are used. Looking at state and local dollars spent as a share of vehicle miles traveled, the US average was $621 for every x,000 miles traveled in 2019.^iv The highest spender was Alaska ($2,239), followed by the District of Columbia ($1,626), North Dakota ($1,262), New York ($1,141), and Pennsylvania ($ane,094). Spending per vehicle mile traveled spending was lowest in Missouri ($327), Tennessee ($328), and Georgia ($335).

Interactive Data Tools

State and Local Finance Data: Exploring the Census of Governments

State Financial Briefs

What everyone should know about their state'due south budget

Further Reading

Using Dollars with Sense: Ideas for Improve Infrastructure Choices
Urban Institute (2019)

Infrastructure, the Gas Tax, and Municipal Bonds
Richard Auxier and John Iselin (2017)

Loftier costs may explain crumbling support for US infrastructure
Tracy Gordon, Urban Wire (2015)

Reforming State Gas Taxes
Richard Auxier (2014)

Assessing Fiscal Capacities of States: A Representative Revenue System–Representative Expenditure Organization Approach, Fiscal Year 2012
Tracy Gordon, Richard Auxier, and John Iselin (2016)

ⁱⁱ Directly general spending refers to all direct spending (or spending excluding transfers to other governments) except spending specially enumerated equally utility, liquor store, employee-retirement, or insurance trust. The utility sector includes public transit systems. Unless otherwise noted, all data are from US Census Bureau Annual Survey of Country and Local Government Finances, 1977-2019 (compiled by the Urban Establish via State and Local Finance Data: Exploring the Census of Governments; accessed 30-December-2021 05:17), https://country-local-finance-data.taxpolicycenter.org. The census recognizes five types of local regime in addition to state government: counties, municipalities, townships, special districts (e.g., a water and sewer authority), and school districts. All dates in sections well-nigh expenditures reference the fiscal yr unless explicitly stated otherwise.

Source: https://www.urban.org/policy-centers/cross-center-initiatives/state-and-local-finance-initiative/state-and-local-backgrounders/highway-and-road-expenditures

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