Write Up:

State and federal revenue budgets help MoDOT staff do a better job budgeting limited funds for the department's operations and capital program. The target is for actual revenue to match budgets with no variance.

The actual state revenue for roads and bridges from motor fuel taxes, motor vehicle sales taxes, motor vehicle driver’s licensing fees and miscellaneous fees was 1.7% more than budgeted for second quarter of FY 2024. The positive variance of 0.9% for non-highway modes is attributed to higher-than-projected motor vehicle sales tax revenue in the State Transportation Fund.

The actual federal revenue for roads and bridges was 2% more than budgeted for federal FY 2023. The negative variance of 70.7% for non-highway modes is attributable to the timing of project expenditures.

The largest source of transportation revenue is from the federal government. Funding is received through various federal transportation agencies, including Federal Highway, Transit, Aviation and Railroad Administrations. The previous transportation funding act, Fixing America’s Surface Transportation (FAST) Act, authorized federal programs for the five-year period from 2016-2020. It expired Sept. 30, 2020, but was extended for another year by continuing resolution. In November 2021, the federal transportation bill, the Infrastructure Investment and Jobs Act (IIJA), was reauthorized. The new bill is estimated to increase federal funding to Missouri approximately 25% from 2022-2026. Federal revenue for other modes is reliant on the timing of project expenditures.

The primary source of federal and state revenue is motor fuel tax. Prior to the passage of Senate Bill 262, the motor fuel tax rates had not changed in more than 20 years. During the same time frame, the cost for materials and labor doubled or even tripled. The passage of Senate Bill 262 will increase the state's previous 17 cents per gallon by 2.5 cents per gallon per year over the next five years starting Oct. 1, 2021.

Purpose of the Measure:

This measure shows the precision of state and federal revenue budgets.

Measurement and Data Collection:

State revenue for roads and bridges include motor fuel taxes, motor vehicle and driver licensing fees, motor vehicle sales taxes paid by highway users, interest earnings and miscellaneous revenues. State revenue for other modes includes motor vehicle sales taxes, aviation fuel taxes, jet fuel sales taxes, motor vehicle licensing fees, railroad assessments and appropriations from General Revenue and interest earnings. The measure provides the cumulative, year-to-date percent variance of actual state revenue versus budgeted state revenue by state fiscal year. Federal revenue for roads and bridges is the amount of federal funds available to commit in a federal fiscal year. Federal funds are distributed to states in accordance with federal law. Federal revenue for other modes is the amount reimbursed to MoDOT for expenses incurred in a state fiscal year. 

The targets set for this measure are set by internal policy and will not change unless policy changes, regardless of performance.