HIGHWAY PLANNING SURVEY DATA AS A BASIS FOR HIGHWAY FINANCE POLICY

THE PAPER TAKES THE POSITION THAT THE FORMULATION OF SOUND HIGHWAY FINANCIAL POLICY SHOULD INVOLVE TWO FUNDAMENTAL CONSIDERATIONS: FIRST, UNDERSTANDING OF EXISTING FINANCIAL POLICY AND ITS RELATIONSHIP WITH OTHER EXISTING PUBLIC FINANCE POLICIES. SECOND, UNDERSTANDING OF FACTORS OTHER THAN FISCAL THAT AFFECT HIGHWAY FINANCIAL POLICY. THE FUNDAMENTAL CONCEPTS OF HIGHWAY FINANCE ADOPTED IN THE DISCUSSION ARE: FIRST, THAT TRANSPORTATION CHARGES AND FACILITIES ARE RELATED. SECOND, THAT THERE IS A WIDE VARIATION IN THE IMPORTANCE OF ROADS IN THE TRANSPORTATION SYSTEM. THE TRENDS OF HIGHWAY POLICY IN THE NATION AND IN MICHIGAN ARE PRESENTED AND RELATED TO THE BROADER TRENDS OF GENERAL PUBLIC FINANCE. ALSO SHOWN IS THE DIRECTION OF THESE TRENDS RELATIVE TO THE BASIC TENETS OF SOUND HIGHWAY POLICY. IT IS REVEALED THAT THERE IS AN INCREASING DISPERSION OF USER REVENUES OVER ROADS AND STREETS HAVING SLIGHT TRANSPORTATION VALUE DESPITE THE FACT THAT USER CHARGES ARE PAID FOR BENEFITS WHICH CAN ONLY BE DELIVERED THROUGH THE DEVELOPMENT OF AN ADEQUATE TRANSPORTATION SYSTEM. THIS PRACTICE RESULTS IN AN UNEQUAL DISTRIBUTION OF BENEFITS AMONG DIFFERENT CLASSES OF USER-CONTRIBUTORS. FINALLY, PRINCIPLES ARE SUGGESTED BY WHICH EXPENDITURE OF USER REVENUES CAN BE DIRECTED TO ROAD SYSTEMS IN SUCH A WAY AS TO RESULT IN A BALANCE BETWEEN THE CHARGES PAID BY EACH CLASS OF USER AND THE BENEFITS THEY RECEIVE THROUGH UTILIZATION OF THESE SYSTEMS. EQUALLY IMPORTANT, CERTAIN FACTORS ARE POINTED OUT-THE FISCAL FACTS OF THE SITUATION AND THE ACTUAL NEED OF THE SYSTEMS-WHICH MUST BE CONSIDERED AS POSSIBLY MODIFYING THE APPLICATION OF THE PRINCIPLES. /AUTHOR/