| Abstract: | Highway programs were included in the Reagan administration'sNew Federalism proposals which were designed to return manyfederally supported projects to state and local governments.Shortly after those proposals were presented, Congress enactedthe Surface Transportation Assistance Act of 1982. The act increasedthe federal highway fuel tax by five cents to nine cents pergallon (of which states receive four of those five cents forhighway purposes). Although devolution of responsibility toaddress state and local needs was a key feature of the New Federalism,an analysis of the effects of the act on Ohio suggests thatthe increase in highway revenues may have skewed states' prioritiesin both their maintenance outlays and capital project selectionprocess. |
