SUGGESTED FINANCING OF FUTURE HIGHWAY PROGRAMS AS IT RELATES TO FEDERAL-STATE RATIO

AN ANALYSIS WAS CONDUCTED IN VARIOUS STATES OF THE ORGANIZATION FOR CONSTRUCTION AND OPERATION OF A HIGHWAY PROGRAM. IT IS CONCLUDED THAT WITHOUT CONTINUED SUBSTANTIAL FEDERAL-AID HIGHWAY CONSTRUCTION, THE HIGHWAY SYSTEM WOULD BOGG DOWN DUE TO FINANCING DIFFICULTIES. IN ORDER TO RELATE A COST-RATIO FOR FEDERAL-STATE PARTICIPATION IN FUTURE HIGHWAY CONSTRUCTION, THE HIGHWAY SITUATION IS ANALYZED IN MICHIGAN. THE CONSTRUCTION AND MAINTENANCE OF THE HIGHWAY SYSTEM IS FINANCED ALMOST ENTIRELY FROM FEDERAL TRUST FUND AND STATE EARMARKED GAS AND WEIGHT TAX REVENUES. AVAILABLE FUNDS ARE SUMMARIZED FOR MAINTENANCE, OPERATION, CONSTRUCTION, INCLUDING BOND RETIREMENT AND ADMINISTRATION. DIFFICULTY IS ENCOUNTERED IN OBTAINING ADDITIONAL FUNDS FOR ROADS. TOLL ROADS ARE ADVOCATED FOR INTER-CITY PLEASURE TRIPS. HOWEVER, THIS WILL NOT DIMINISH THE NEED FOR FREE ROADS FOR COMMERCIAL AND PLEASURE TRAVEL. THE DRIVER POPULATION IS INCREASING SO RAPIDLY, WHICH STRESSES THE NEED FOR SAFE ROADS BETWEEN: (1) INDUSTRIAL AREAS AND THE FREEWAYS, (2) THE RURAL CENTERS AND FREEWAYS, AND (3) THE URBAN CENTERS AND FREEWAYS. THESE NEEDS MUST BE CONTINUALLY MET WITH THE AID OF EXPANDED FEDERAL AID PROGRAMS.