Funding Guide

Where Does the Money Come From and How Is It Spent?

Each year, the public contributes almost $4 billion to operate, maintain and improve the Bay Area's transportation system. Over the next two decades, some $90 billion is expected to flow to the region from local, state and federal funding sources. Most of the money used for transportation projects is generated from taxpayers like you who pay fuel, sales and other taxes and fees, which then go to local, state and federal funding pots.

As depicted in the tables at right from MTC's 1998 Regional Transportation Plan (RTP) -- a 20-year investment blueprint for Bay Area transportation -- local funds account for roughly two-thirds of all transportation revenues in the Bay Area. Much of these funds are needed just to cover the costs of system maintenance and day-to-day operation of the existing public transit network.

While funds from federal, state and local sources support a wide variety of programs and projects, each source also has its own primary function:

Federal
The majority of federal transportation funding is used for capital projects, such as new highway and rail construction, and for specific projects earmarked by Congress.

State
State funds are used for new capital projects as well, but also cover maintenance costs, like street and highway resurfacing. A much smaller portion covers operational costs, such as paying the salaries of bus drivers and mechanics. In addition, state funds are used as matching funds for federal projects.

Local
Local funds -- by far the largest piece of the funding pie -- are used for both capital and operating purposes, as well as to match federal and state sources. A substantial portion of local funding is linked to voter-approved measures with detailed plans for spending the money on specified projects.

Transportation funds are divided into myriad funding programs at the federal, state and local government levels. Each program is handled differently, depending upon its size, the eligible uses, and who is making the spending decisions. Sound complicated? It can be tricky. Listed on the following pages are the major transportation funding categories, along with details on the size, the eligible uses, who can apply for the funds and who decides which projects will receive funding.

PROJECTED REVENUES
Billions Of Inflated Dollars
(1999 - 2018)

	Billions	% of total
Local	62.8	70%
Federal	14.7	16%
State	$12.2	14%
Total Revenues	$89.7	100%

PROJECTED EXPENDITURES
Billions Of Inflated Dollars
(1999 - 2018)

	Billions	% of total
Transit: Maintenance/Operations	$47.0	52%
Roads: Maintenance/Operations	$23.9	27%
Expansion/Improvements	$15.8	18%
Bridge Seismic Retrofit	$2.6	3%
Other	$0.4	<1%
Total Expenditures	$89.7	100%

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