Governor Olli Rehn: Dialling back monetary restraint
Status of the Highway Trust Fund Under MAP-21
1. Congressional Budget Office
January 13, 2013
Status of the Highway Trust Fund
Under MAP-21
Transportation Research Board Annual Meeting
Sarah Puro
Principal Analyst, Budget Analysis Division
Congressional Budget Office
2. Overview
■ CBO ABCs
– Nonpartisan Congressional support agency
■ The Highway Trust Fund and MAP-21
– Funding history and general fund transfers in MAP-21
– CBO estimates that the trust fund can meet obligations through
FY 2014
– Obligated balances plus unobligated contract authority in the
Highway and Transit Accounts combined equals 3 to 4 years of
dedicated revenues
CONGRESSIONAL BUDGET OFFICE
3. What CBO Does
■ Provides objective, nonpartisan analysis to the Congress in
preparing and analyzing the budget and legislative proposals
■ Helps Congress develop and stay within a budget plan
– Baseline and cost estimates
■ Helps Congress consider issues related to the budget and to
economic policy
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4. What CBO Does Not Do
■ Make policy recommendations
– CBO is strictly nonpartisan; makes no judgments about a
legislative proposal’s “merits”
■ Write legislation
– CBO evaluates different proposals or options
■ Implement programs, regulations, enforce budget rules—
that’s the job of the Executive Branch
■ Audit spending or receipts—that’s the responsibility of the
Government Accountability Office (GAO)
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5. Highway Trust Fund Basics
■ Highway Account
– Highways, highway safety (NHTSA), and regulation of motor
carriers (FMCSA)
– Funded by gas tax, diesel tax, and taxes on certain heavy trucks
and truck tires
– Revenues will total about $33 billion in FY 2013
■ Transit Account
– Finances 80 percent of federal transit programs
– Funded by gas tax
– Revenues will total about $5 billion in FY 2013
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6. What Did MAP-21 Do?
■ Reauthorized surface transportation programs
– Across DOT, increased annual contract authority by less than $1 billion per year.
■ Transferred money to the Highway Trust Fund
– $2.4 Billion from Leaking Underground Storage Tank Trust Fund (LUST)
– $18.8 Billion from the general fund
■ More money for the Transportation Infrastructure Finance and
Innovation Act (TIFIA)
■ Limited expansion of tolling authority
■ Authorized $500 million for Projects of Regional and National
Significance (still needs to be appropriated)
– Generally less discretionary funding for DOT
– 92% of funds distributed through apportionment
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7. What Did MAP-21 NOT Do?
■ Create any new, ongoing revenue for the Highway Trust Fund
from users
■ Allow TIFIA applicants to “pay for their own subsidy”
■ Expand the Railroad Rehabilitation & Improvement Financing
(RRIF) program
■ Significantly change formula distribution from the Safe,
Accountable, Flexible, Efficient, Transportation Equity Act, a
Legacy for Users (SAFETEA-LU; Public Law 109-52) (although it
did consolidate a number of programs)
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8. Highway Account Receipts, Outlays, and Balances,
1998 to 2022
(Billions of nominal dollars)
60
Actual Projected
Outlays
40
Receipts and
20 General Fund
Transfers
0
- 20
End- of- Year
Balances
- 40
- 60
- 80
1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
Source: Congressional Budget Office.
Notes: Assumptions are based on CBO's March 2012 baseline projections, updated for MAP-21 enactment, and 2012 Actual results.
CBO’s baseline is calculated by increasing the obligation limits set for current year by a measure of projected inflation and by assuming
extension of the current tax on fuels and on heavy vehicles.
The Highway Trust Fund cannot incur negative balances. Negative balances are illustrative of the cumulative deficit that would be
incurred by the Highway Account under CBO’s baseline scenario.
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9. Highway Account: End of Fiscal Year 2012
(Billions of dollars)
100
90
80 Unobligated
70
60
50
40
Obligated
30
20
10
0
Outstanding Contract Authority Estimated Annual Revenues
(Three- year average)
CONGRESSIONAL BUDGET OFFICE
10. Transit Account: End of Fiscal Year 2012
(Billions of dollars)
25
20
Unobligated
15
10
Obligated
5
0
Outstanding Contract Authority Estimated Annual Revenues
(Five- year average)
CONGRESSIONAL BUDGET OFFICE
11. Further Information
Cost Estimates for Legislation:
www.cbo.gov/search/ce_sitesearch.cfm
Other CBO Transportation and Infrastructure Publications:
www.cbo.gov/topics/infrastructure-and-transportation
CONGRESSIONAL BUDGET OFFICE