Roads and Road Construction in the United States

Construction of practically all roads of the Federal-aid and State highway systems is by contract let by the State highway departments, to the lowest bidder. All work is advertised. Each State highway department makes its own tests of materials either in its own laboratory or in a nearby commercial laboratory. It likewise conducts its own inspections of construction work. Fed eral-aid highways are subject also to Federal inspection.

Administration of Local Roads.

County roads, in general, are built and maintained by county officials with funds raised, as a rule, by taxation of real and personal property within the county. In 1938 such funds were supplemented by $227,178,000 derived from gasoline taxes and other imposts on highway users and as signed for local road improvement. The more advanced counties employ a county engineer or an engineering organization to super vise the technical details of construction, the county governing body acting only as an administrative body. In some States the lesser roads in each county are administered, constructed, and maintained by a host of township and district officials, each of whom may have charge of only a few miles of road. The Federal Government contributed to the construction of a large mileage of local road in its emergency program to provide employment. It has continued this work with authorizations averaging $16,000,000 annually in the fiscal years 1938 through 1941.

Sources of Highway Revenue.

For many years, the prop erty tax and poll tax were the only sources of road revenues. They were collected and expended by the local Governments. Commu tation of the poll tax was permitted. As an indirect source of revenue, prison labour, while not a large factor, has been used, mainly to give employment to prisoners.

The first motor vehicle fees levied by the States were nominal and were designed merely to cover cost of registration. The rapid growth in motor vehicle registration increased the demand for im proved roads with the resulting issuance of State and county bonds to secure funds to speed the improvements beyond the rate pos sible with limited current revenues. With improved roads, special benefits resulted to operators of motor vehicles and the motor vehicle taxes have been increased in recognition of this fact.

Since 1929 all States have levied a gasoline tax as a source of additional revenue. The tax was first levied in 1919 by four States : Colorado, a 1 cent tax per gallon ; New Mexico, 2 cents per gallon ; North Dakota, a cent per gallon; and Oregon, 1 cent per gallon. In 1920 Kentucky joined the four and levied a gas tax of I cent per gallon. In 1921, 15 States levied taxes from

cent to 2 cents per gallon. In 1922, four additional States levied taxes. In 1923, 35 States levied a gasoline tax. The tax rate varies from 2 cents to 7 cents per gallon in different States, the weighted average being 3.96 cents per gallon. In 1938 the total State motor-fuel tax earnings, inspection fees, and similar receipts, amounted to $771,764,000 and the consumption of taxed gasoline was 19,609,728,000 gallons. In that year highway users also paid $388,825,000 for registration of vehicles and $16,421,000 as motor carrier taxes. The total contribution of highway users was $1,177,010,000. Of the amount distributed 4% went for col lection costs, 59% for State highway purposes, 23% for local roads, less than 1 % for park and forest roads, and 13% went for non-highway purposes.

The total income to State highway departments in 1938 was $1, 096,908,000, and balances on hand brought the total funds avail able to $1,500,000,000. The current income from State sources was of which motor vehicle users supplied over 98%. Taxes on property no longer supply significant amounts to State highway funds. The net amount of funds received from Federal sources was $196,826,000. Income from sale of bonds, transfers from local units and from miscellaneous sources, brought the total income from other than current State revenue sources to $279,565,000.

Expenditures for State administered highways in 1938 amounted to $895,132,000. The States spent $523,738,000 for construction of highways and $232,388,000 for maintenance. These expendi tures were divided $638,685,000 on primary State highways, $74, 970,000 on secondary roads in 13 States, and $42,471,000 on urban extensions of State highways. The outlay for administration, equipment, highway police, and interest on debt amounted to $139.006,000. In addition $84,711,000 was used for retirement of debt, $121,262,000 was transferred for use on local roads and streets, $7,898,000 was used for highways not on the State system, and $26,119,000 was used for non-highway purposes. The total expenditure for all purposes was $1,135,122,000. Since 1916 a total of $2,235,000,000 Federal aid and $1,200,000,000 emergency funds have been authorized by the Federal Government to aid the States in highway improvement. The figure for Federal aid includes authorizations through the fiscal year 1941. For the fiscal year 1940 the authorization is $100,000,000 for improvement of the Federal-aid system, $15,000,000 for secondary roads, and $20,000,000 for elimination of highway-railroad grade crossings.