1. AUGUST 2014 Intergovernmental Funding of Surface Transportation

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 Transit Own-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. Federal Government State Government Local Government $46 Billion $23 Billion $1 Billion $103 Billion $107 Billion $11 Billion The Surface Transportation Funding System FY 2011 Expenditures OWN SOURCE REVENUE $58 Billion $80 Billion $73 Billion Own source flows Intergovernmental transfers 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.

5. Size of Federal Role Within Each State Varies Federal share of total surface transportation expenditures, FY 2007-2011 Federal Share, National Average 24% Federal Share, National Average 24% 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 Shortfalls Actual 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 Falling Expenditures 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 Taxes Funding 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 Revenues Federal 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