Summary: According to the most current data on the nation's highways, conditions are declining. Of the highway systems receiving federal aid, the interstate system has shown the most wear and tear. While the interstate system represents only 1 percent of the nation's roads, it handles 20 percent of the traffic. Increasing amounts of road deterioration foretell a need to increase funds for rehabilitation, if this vital transportation system is to be maintained. The Federal Highway Administration (FHwA) estimates that backlogged rehabilitation needs stand at $7 billion. FHwA warned that further funding delays could cause a need for much more massive expenditures. While funding needs for highway construction and maintenance have increased rapidly, highway financing has not kept pace with these increases. Capital outlays for construction at the state level fell dramatically, while maintenance spending increased slightly. States are deferring maintenance, reducing highway personnel, and reducing construction projects that are totally state financed. Some states also anticipate difficulty in matching federal funds. States are trying to increase highway revenues in a variety of ways and have had mixed success in these endeavors. While some of these actions have helped, highway agency officials foresee the need for further steps to increase revenues. Completing the interstate system is one of the major highway construction costs still facing the nation. As completion is currently defined, it involves making improvements on segments already serving traffic. Redefining completion and funding only essential interstate gaps would expedite completion but would raise problems as to how the other needs could be funded. In its report, GAO made several recommendations that would aid in bettering the highway system. The Department of Transportation agreed with the issues GAO had presented and noted that appropriate attention would be given to them.
