You asked if the percent of federal transportation funds coming to Connecticut has decreased in recent years and what is anticipated with the impending reauthorization of funds.

SUMMARY

Connecticut’s share of the total federal transportation-funding program has been slowly declining, primarily due to the mature nature of the State’s system compared to growth observed in other states’ systems, according to the Connecticut Department of Transportation. However, the growth in the total program has resulted in a relatively stable level of funding for Connecticut, despite the gradually declining share.

The most recent federal funding authorization program technically expired September 30, 2003, but Congress has temporarily extended it until September 30, 2004 while it works on a new multi-year reauthorization bill. The new bill will probably change the distribution formulas used to determine how much funding each state receives. As a result, Connecticut will see an overall increase in funding from past years, but a smaller percentage increase than other states.

TEA-21

The Transportation Equity Act for the 21^st Century (TEA-21), the six-year authorization for federal transportation programs, passed in 1998 (P. L. 105-178). TEA-21 provided for a guaranteed level of federal funds for surface transportation through 2003 and ensures that tax revenues deposited into the Highway Trust Fund (HTF) accounts are spent on transportation improvements. The guaranteed amounts for highway funding are based on the HTF Highway Account receipts. Transit funding is guaranteed at a selected fixed amount. These guaranteed funds represent the least amount of the federal authorization that can be spent.

Highway and transit funding is apportioned for numerous categorical grant programs. Highway programs include bridges, planning, interstate maintenance, national highway system, congestion mitigation and air quality inmprovement, surface transportation, high priority projects, and a minimum guarantee fund. Transit programs include fixed guideways, earmarked projects, enhancement, capital, job access, rural transit assistance, elderly and disabled, and planning. Most transit assistance is for capital, administrative, and planning purposes rather than for operational assistance.

Under TEA-21, total federal transportation funds are apportioned to the various states. The apportionment per state is based on federal allocation formulas for each particular highway and transit program that are applied equally for all states. A state’s total apportionment is the sum of the apportionments for all programs plus any additional funds necessary for equity considerations. A state’s ultimate share of apportionments is at least 90.5% of its contributions to the HTF Highway Account.

Annually, Congress appropriates funds for these programs through the United States Department of Transportation’s (U.S. DOT) budget. The U.S. DOT allocates the appropriated funds to the states. These appropriations may or may not equal the full apportionment.

TEA-21 also controls a state’s spending by restricting the amount the state can “obligate” on projects. Unused amounts for many programs do not expire at the end of the fiscal year, but instead carry over to future years.

CONNECTICUT’S TEA-21 APPORTIONMENTS (1998 – 2003)

The multi-year federal apportionments for Connecticut highway and transit programs totaled $3,022,416,021. While the apportionment per year varied, the annual average was $503,736,004, made up of $404,084,792 for highway programs and $ 99,651,212 for transit programs.

Table 1 shows total TEA-21 apportionments for Connecticut highway and transit programs by year, the percent of the total apportioned per year, and the percent change per year.

Table 1: TEA-21 Apportionments for Connecticut

Source: Connecticut Department of Transportation 2003 Master Transportation Plan

The Connecticut Department of Transportation (ConnDOT) observed that Connecticut’s share of the total federal program has been slowly declining, primarily due to the mature nature of the State’s system compared to growth observed in other states’ systems. However, the growth in the total program resulted in a relatively stable level of funding, despite the gradually declining share.

TEA-21 REAUTHORIZATION

TEA-21 was set to expire on September 30, 2003. Congress has temporarily extended TEA-21 with the Surface Transportation Extension Act of 2004, Part IV (P.L. 108-280), its fifth extension. The authority to obligate funds under the Highway Program will expire on September 24, 2004 and other programs on September 30, 2004, pending enactment of legislation reauthorizing the federal-aid highway program.

ConnDOT anticipates that a reauthorization of funds will result in a similar six-year program with a minimum of changes from TEA-21. However, significant changes have been proposed. For example, under the proposed Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2003 (SAFETEA), Connecticut will receive a 10% funding increase over its TEA-21 funding, the smallest increase of any state. This is because Congress will probably adopt revised apportionment formulas that would change a state’s rate of return from gas taxes it paid into the HTF. Such a change would help other states (primarily the southern and western states), but hurt Connecticut and other northeast states, relatively speaking. However, until federal funding is reauthorized, we do not know what funding change Connecticut will actually realize.

JLK:ro