INNOVATIVE FINANCE BEYOND THE TRANSPORTATION EQUITY ACT FOR THE 21ST CENTURY: STATE DEPARTMENT OF TRANSPORTATION INITIATIVES

In his comments, J. Horsley of the American Association of State Highway and Transportation Officials observes how far the state of the practice in transportation finance has advanced since passage of the National Highway System Designation Act of 1995. This enactment and subsequent legislation have brought about a revolution in the way that major projects are financed in the United States. Projects and plans of finance in Texas, California, Florida, South Carolina, Illinois, Arkansas, and Washington support heightened levels of investment and new types of innovation. Despite these advances, investment needs continue to outstrip resources. The Federal Highway Administration's most recent condition and performance study showed that $100 billion in additional resources will be needed during the next 10 years for the urban and rural Interstate system. The guaranteed funding levels under the Transportation Equity Act for the 21st Century (TEA-21) and the new financing techniques that states are now embracing provide great opportunities, but continued investment will be necessary to meet ever-growing needs.