The Federal Highway Administration requires State departments of transportation (DOTs) to compile, analyze, and report State motor-fuel, motor-vehicle, driver license, motor-carrier data, and highway finance data associated with expenditures by State and local governments. The purpose of this study was to develop a new methodology and procedures for collecting and analyzing local government roadway revenue and spending data in New Jersey, so that NJDOT can complete the FHWA Local Highway Finance Report (FHWA Form 536) on at least a biennial basis. Based on the review of current practices, the research team developed a sampling and estimation methodology that relies on the collection and analysis of local government revenue and expenditure data as reported in local government financial audit reports. NJDOT Research
Audit reports for Fiscal Year 2015 were used to complete the analysis. In all, data for a total of 177 municipalities and 13 counties were compiled and analyzed. Analysis results indicated that roadway-related spending by local government units (municipalities and counties) in New Jersey totaled an estimated $3.2 billion dollars in FY 2015. Approximately 57 percent of all local roadway-related spending was for highway law enforcement and safety. Spending for routine maintenance represented another 22 percent of overall spending, while outlays for capital projects represented 17 percent of overall local government spending on roads. The remaining four percent of spending was for road and street services. The vast majority of revenue used to support local highway spending (94 percent) came from general fund appropriations, proceeds from local bond sales, and miscellaneous local receipts. Only about six percent of the revenue used to support local highway spending came from State grants, Local Aid, and/or Federal grants.
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