EFFECTS OF FEDERAL TRANSPORTATION FUNDING POLICIES AND STRUCTURES: OVERVIEW

Several recent policy developments in highways, airports and transit were analyzed in this study of the effects of federal funding policies and structures on transportation investment. Six discrete transportation analyses (Mass transit; highway matching requirement and funding levels, preliminary model; statistical analysis of the impact of federal highway and on state allocation decisions; Appalachian Development Highway System; Analysis of State highway projects by federal aid system and type of work; airport development aid program) were performed and the resulting conclusions were used to suggest basic principles which were investigated through interviews. This overview report sets forth the implications of manipulations of matching ratios, allocation mechanisms, and categorical restrictions in federal aid programs. Recommendations regarding the specification of these funding structures are cast as a function of funding intent. The four intent categories used are: compelling national interest; regional development; aim of motivating the recipient to expand more of his own funds on the program; and provision of financial relief on this program to the recipient. This overview paper also reports on interviews with transportation professionals. The perceived effects of the 1978 Surface Transportation Act as regards funding parameters are noted and recommendations are made.