Metropolitan Transportation Funding

Abstract

Recent efforts to implement regional-level funding sources in Las Vegas, Nevada; California's San Francisco Bay Area; and the state of Texas indicate that some states and regions are responding to transportation needs with institutional innovations that could allow greater metropolitan-level involvement in transportation finance. In light of the waning revenue-generating capacity of federal and state transportation user fees—historically, the main source of U.S. transportation funds—this article discusses different models for providing metropolitan planning organizations (MPOs) with revenue-generating authority, the conditions under which different models may be more or less attractive, and what characteristics may make some MPOs candidates for such innovation. Institutional and practical considerations are also examined. A view of current transportation finance and policy trends provides context for the discussion, as does an account of how MPOs and their transportation projects are funded today.

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