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date: 23 March 2019

Abstract and Keywords

No area of state and local government finance has a longer lineage of public spending and intergovernmental relationships (or is more visible to citizens on a daily basis) than the transportation sector. This article provides a tour through the labyrinth of financing arrangements that are now used to meet the nation's surface, air, and water transportation needs. Once the major claimant on state and local spending, transportation's role has eroded in the face of the demands of education and the spiraling needs of health-related programs. Likewise, the shifting public mood and the new age of austerity have brought transportation funding to a crossroads. With prospects for added federal transportation funding bleak because of the long-term pressures on the federal budget, any future initiatives will be seen in the state and local sector.

Keywords: local government finance, transport finance, intergovernmental relationships, transportation needs, federal budget, local sector

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