Road Conditions and Spending by State: Does More Money Mean Better Roads?

The funding for interstate highway improvements come from three major sources, with state and local governments accounting for about 75% of the funds and the federal government (Highway Trust Fund) making up the remaining 25%.

While those federal funds from the Highway Trust Fund are typically distributed in the form of grants, the trust primarily receives its funding from the current fuel tax rate of 18.4 cents per gallon of gas that motorists have been paying at the pump since 1993.

In the case of state and local government funding, the sources also stem from a variety of tax revenues such as gas taxes, income taxes and others, all varying by state and locality.

The impact of investing in roadway improvements is significant. Roadways are the gateway to and connector of everyone to everything within the American economy. Road improvements provide less congestion, faster and safer access to destinations and fewer direct costs to American taxpayers. In short, improved infrastructure is a stimulant to economic growth and activity.

For those states and localities lacking the necessary funding or commitment to improving roadway infrastructure, economic growth is typically stifled, as infrastructure is a key metric and driving factor for business and industry growth. Infrastructure was quoted as a driving factor in Amazon's decision to select their second headquarter location.

The roads sector is critical for local, national and international transportation of goods and services. More than ever, roads are essential in supporting economic growth, enabling socially distant travel and connecting communities.

As is the case in Florida, some governments have seen reduced traffic volumes as a good time to advance highway maintenance contracts. But other states have found that the dramatically reduced volume of motorists on the roads has resulted in fewer dollars being spent at the pumps and fewer gas taxes being generated for infrastructure maintenance and new projects.

The North Carolina Department of Transportation (NCDOT) has had to reduce the number of planned construction projects by nearly 100 for the next fiscal year. This is a drop in spending from over $2 billion to about $670 million. The announcement represents a significant business loss for construction companies specializing in transportation projects and other NCDOT contract works.

Absolutely. Poor roadway conditions within our local communities create additional delays and expenses for our fire, emergency and police first responders. They are absolutely a critical factor in life-or-death situations. There's no question that a relatively smooth and distress-free roadway surface would provide a faster and safer route to carry out emergency services than a rough-riding roadway riddled with patches and potholes.

Absolutely. Poor roadway conditions within our local communities create additional delays and expenses for our fire, emergency and police first responders, and are absolutely a critical factor in life-or-death situations. There's no question that a relatively smooth and distress-free roadway surface would provide a faster and safer route to carry out emergency services than a rough-riding roadway riddled with patches and potholes.

The impact of poor roads on local life and economy, mostly in rural areas, is often underestimated. The world becomes a little smaller, and the people you might interact with or do commerce with are reduced exponentially with every mile you're able or willing to travel less. We are usually pretty spoiled in the U.S. thanks to the world-famous interstate system. However, infrastructure is not something you build once and never have to touch again.

I have witnessed several local and state agencies take advantage of lower traffic volumes during the pandemic to provide critical preventive and preservation treatments to local infrastructure. The effort capitalizes on keeping good roadways good, with minimal impact on the motorist. I believe more agencies should double down on this opportunity, and it would prove to be a highly effective economic stimulus.

Analysis by S&P Global in May 2020, when the U.S. was at the peak of its national shutdown, looked at two economic scenarios — one with infrastructure investment and one without (baseline). Their analysis found that if the U.S. invested $2.1 trillion into public infrastructure spending over a 10-year horizon, it could create 2.3 million jobs by 2024 as the work is being completed, helping millions of unemployed workers displaced by COVID-19. The productivity boost from the infrastructure investment, if done wisely, could add as much as $5.7 trillion to the U.S. over the next decade. The estimated potential real GDP growth over the next 10 years would be lifted to 2.2% from 1.7%.

Infrastructure investment is the key to supporting vulnerable communities, strengthening the economy in remote areas and maintaining and improving them in densely populated areas. Financial investment will need to be expedited, diversified and consistent to keep society moving and connected for today and in the future.

Through its indirect effects, infrastructure spending is usually an investment that yields higher returns than it originally cost. It's a very effective tool a government has in times of crisis and high unemployment. The main issues stopping infrastructure spending are usually political and not economical. I tend to think that we could spend a lot more money and probably get a lot more benefit out of each dollar, but this is based on an idealized model or a long-term view of 20 years in the future. In today's political world, there is a lot of pressure to focus on the short term and ignore long-term needs, which can be seen as too expensive or not providing a payoff. The long-term gain here is tremendous and based on a lot of research. The basic problem when we look at infrastructure spending is the fact that there is a huge amount of uncertainty out there.

I believe the key to a strong economy is a robust infrastructure of safe, long-lasting and maintained roadways. This roadway network would bring confidence to every motorist's doorstep and instill a sense of reliability and pride. The answer to achieving the best collective roadway network on the planet lies in a data-driven maintenance and repair strategy — a strategy that not only encourages communities to leverage preventive, preservation and recycling treatments but rewards and acknowledges this behavior as well. While improving infrastructure is certainly an economic stimulant, there must be a plan and strategy to preserve, maintain and protect this investment.

Anyone who thinks that good roads and infrastructure are god-given and not one of the United States' greatest achievements should move their eyes to other countries see how the lack of infrastructure keeps them in poverty. You won't be able to jumpstart an economy when a 20-mile trip is a big ordeal. That issue is more common around the world than people are aware. On the other hand, it's also telling how China has used large amounts of their economic gains of the last 15 years on building state-of-the-art infrastructure because they know that will set them up for decades to come. It's almost always a good idea to invest in infrastructure.