Innovative State Transportation Funding and Financing: Policy Options for States

A 2007 National Governors Association Center for Best Practices Issue Brief, State Policy Options for Funding Transportation, discussed the basic state policy options for funding transportation and outlined recent innovations. This paper extends and updates this earlier work by: (1) providing case studies of state and international experience with a full range of policy options, (2) addressing new options that have emerged, (3) summarizing new developments in public private partnerships (PPPs), and (4) detailing financing options, such as congestion pricing, which establish a price signal to users that can both raise revenue and encourage more efficient use of the transportation infrastructure. Each chapter provides a description of a different type of innovative financing or funding approach or ways to address demand; best practices from the United States and abroad; and additional considerations for states that are considering these options.