Study Shows Missouri Lagging Robust National Growth in Transportation Spending

Date Posted: November 22, 2019

Posted In: Discussion, Ideas, News,

States increased their spending in the fiscal year that ended in September, pumping more resources into infrastructure and education at the highest annual rate since before the Great Recession, according to a study by the National Association of State Budget Officers.

The $2.1 trillion spent by states in fiscal year 2019 was up an estimated 5.7%, and federal dollars heading toward states went up 4.7%, according to the group. Many states used funds from higher gas taxes to drive an 8.9% year-over-year increase in transportation-related funding. But Missouri lagged that national growth by a wide margin.

A year ago Missouri  defeated Proposition D — which would have marked the first gas tax increase since 1996. From FY 2017 to FY 2018 Missouri had a 1.3% increase in transportation spending from its $2,025,000 total to $2,052,000 in 2019. In 2019 Missouri spending is estimated to drop to $2,031,000, a one percent decrease.

During 2019, NASBO’s report indicates that 18 states increased spending of state funds on transportation by at least 10%, Brian Sigritz, NASBO’s director of state fiscal studies, said.

Transportation spending by states in 2019 was roughly $172 billion, about 8% of total expenditures. Sigritz pointed out that there are both Democratic and Republican states that have prioritized transportation in the past five years or so.

In some places this has meant raising gas taxes, imposing fees on electric vehicles and adding toll lanes. Some of the revenue from sources like these is now working its way through budgets.

NASBO tracks spending in seven program areas, all of which saw estimated increases in spending during fiscal 2019, which ended on June 30 for most states.