For too long, public infrastructure has been built without regard for the long-term costs of operations and maintenance. This is because funding and program responsibilities have been fragmented between capital and maintenance functions. In the 1950s and 1960s, the federal government limited the use of the Highway Trust Fund to construction. That constraint forced state and local governments to use their own revenue for maintenance, which was often deferred, resulting in the premature deterioration of our nation's highways.
IMBALANCE. Today, an imbalance remains between the funds available for capital and for maintenance, despite funding increases in the past two decades for highway rehabilitation. Last year, all levels of government spent almost twice as much on capital projects as on o&m. According to the Federal Highway Administration, state transportation agencies used 60% of highway funds for capital projects but just 18% for o&m. In contrast, local governments spent 31% of their highway funds on capital projects, but a larger percentage--40%--on o&m.