1. HIGHWAY TRUST FUND

2. HOW ARE PUBLIC PROJECTS FUNDED? General Fund Generated by general revenues Bonds Usually by referenda User Fees Pay as you go

3. BEGINNINGS (INTERSTATE) Federal Aid Highway Act (1956) Authorized Interstate Highway System Federally funded infrastructure Public Works Public Benefits

4. 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

5. GOALS Create a self-funding mechanism Originally targeted just towards highways Transit now a beneficiary Political

9. Cause: Less Driving, Increased Fuel Efficiency

13. DETERMINATION OF APPORTIONMENTS Interstate Construction Interstate Maintenance NHS Bridge Surface Transportation Program Interstate Substitution Program CategoriesEquity Adjustments

14. DETERMINATION OF APPORTIONMENTS Minimum Allocation CMAQ Donor State Bonus Interstate Reimbursement Hold Harmless 90% Payment Adjustment Metropolitan Planning

15. 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

16. APPORTIONMENT CATEGORIES CMAQ Congestion Mitigation and Air Quality Programs designed to bring metro areas into attainment Transit HOV Ridesharing

17. APPORTIONMENT CATEGORIES Interstate Substitution Funds used by FTA to create a transit substitute for Interstate Highway usage Rights of way Fixed guideways Bus Lanes

18. 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

19. 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

20. 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

21. 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

22. 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