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CAPITOL
FACTS & FIGURES
 TRANSPORTATION
 THE COUNCIL OF STATE GOVERNMENTS
A  U  G  2  0 1 2 
Unspent Highway Funds
The U.S. Department of Transportation made more than $470million available immediately to states for transportationprojects, according to an Aug. 17, 2012, announcement fromU.S. Transportation Secretary Ray LaHood.
•ThemoneycomesfromfundsinitiallyallocatedtotheDepartmentofTransportationfor671earmarkedtransportationprojectsincludedinappropriationsbillsbetween2003and2006.TheHouseofRepresentatives,inrecentyears,hasbannedearmarksfromspendingbills.•Thetransportationdepartmentisnotifyingstatesabouttheamountofmoneytheyhaveleftfromprojectsthatwerenotcompletedorcostlessthanexpected.Statescanapplytousethosefundsforotherprojects.
1
•Statesareexpectedtoretainanyunusedfundingtheyhavebeenallocated.•StatesmustidentifyplanstousethefundsbyOct.1andobligatethefundingbyDec.31.Fundsnotobli-gatedbytheendoftheyearcangotootherstatesin2013.
2
Statescouldstillspendthefundsontheprojectsforwhichtheywereearmarkedifthoseprojectsarenowreadytomoveforward.
3
•TheObamaadministrationhastheauthoritytorescindtheearmarksbecauseoflanguageincludedintheappropriationsbills.Thisisthersttimethatauthorityhasbeenused.
4
The earmarks were primarily for transportation projects thatare now dead or have been delayed.
•Insomecases,theprojectwascompletedandsomefundingwasleftover.•Otherprojectshavebeenheldupduetodelaysindesign,environmentalreview,additionalfundingavail-abilityorotherissues.
5
Eighteen states have more than $10 million in rescindedearmark funds available.
•Alabama($51.5million),California($43.1million),Texas($30.8million),NewYork($29million)andPennsylvania($28.5million)havethemostfundsavailableamongthestates.•Wyomingistheonlystatewithnofundsavailable.•Californiahas71earmarkedprojectsthatcouldlosefunding,themostofanystate.
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REFERENCES
1
Matthew Daly. “White House o ers states $470M in unspent funds for transportation projects.”AssociatedPress.August 17, 2012. Accessed from:
http://www.washingtonpost.com/politics/obama-oering-states-nearly-half-billion-dollars-in-unspent-funds-for-transportation-projects/2012/08/17/720a5704-e820-11e1-9739-eef99c5fb285_story.html 
2
“USDOT Frees Up $473m for State, Local Road & Transit Projects.”Transportation Issues Daily. August 18, 2012. Accessedfrom:
http://www.transportationissuesdaily.com/usdot-frees-up-473m-for-state-local-road-transit-projects/ 
3
Richard Simon. “How touse an unspent $473 million? No surprise, ideas dier.”
The Los Angeles Times
.August20, 2012. Accessed from:
http://latimes.com/news/nation/nationnow/la-na-nn-obama-transportation-earmarks-20120820,0,6797177.story 
 
4
“USDOT Frees Up…”
5
Ibid.
6
Federal Highway Administration. “Unobligated Balances of FY 2003-2006 Appropriation Act Earmarks (as of August 15, 2012).”Accessed from:
http://www.fhwa.dot.gov/pressroom/redisfy0306states.htm
 
7
Robyn L. Minor. “State still committed to roads projects.”
Bowling Green Daily News
. August 20, 2012. Accessedfrom:
http://www.bgdailynews.com/news/local/state-still-committed-to-roads-projects/article_096c06ac-eae6-11e1-b8cf-0019bb2963f4.html 
Sean Slone, CSG Senior Transportation Policy Analyst |sslone@csg.org
The rescissions could have both advantages and disadvantagesfor states.
•TwoKentuckyroadprojects—aninterchangeandaconnectingroad—nearabusinessandindustrialparkinBowlingGreenforwhichmorethan$7millionwasearmarkedareactuallywellunderway.Theyarebothfullydesigned,rights-of-wayarebeingpurchasedandsomeutilitiesarebeingrelocatedtomakewayfortheprojects.Buttheconstructionphasecan’tmoveforwardbecauseafederallawsuitconcerningenvi-ronmentalreviewstandardsispendingattheappealscourtlevel.StateTransportationCabinetofcialssayit’spossiblethelawsuitwon’tberesolvedbytheendoftheyear,sothestatecouldhavetoreobligatethefundstootherprojectsandndadditionalfederalfundsfortheBowlingGreenprojectslater.•Thereleaseoftheearmarkscangivestatesmoreexibilityincaseswheretheamountofthefederalearmarkdidn’tcomeclosetowhatisactuallyneededforaprojecttobegin.Forexample,Kentuckytrans-portationofcialspointtoa$983,000allocationfortheInterstate66projectinPikeCounty,acomparativelysmallamountonabillion-dollarprojecttheysayisdif-cultforthemtospendeffectively.
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