HIGHWAY FINANCE--THE EVOLUTION OF THE HIGHWAY-USER CHARGE PRINCIPLE. STATE HIGHWAY FINANCE TRENDS

This publication contains two reports on highway finance. first report, The Evolution of the Highway-User Charge Principle, examines the financing concept that, for the most part, pays for building our highways, their maintenance and other related highway costs. It examines the history of road and highway financing in the U.S. and the development of the user-pays concept. user-nonuser debate is described, including who benefits from highways. It explores various definitions of what a user tax is and is not, according to various authorities. What might be called grey areas are discussed: elements of vehicle-related government income which may or may not be highway-user in nature. Finally, how and how much highway beneficiaries pay for the highways are discussed. second report, Highway Finance Trends, examines the means of fiscal revival in State highway programs. It identifies and analyzes representative fiscal mechanisms of the several States which are responsible for the fiscal recovery. It also discusses implications such as the broadening of the scope of State transportation programs, including multimodal financing, highway-user subsidization of public transportation, and the nonuser revenue support of highway and transportation programs.