Analysis of Financing Options for Transportation

T his paper reviews and analyzes various innovative Financing tech­ niques for highw ay and transit. W ith federal support d im inishing and transporta tion needs growing, agencies are seeking new ways to m eet this crisis. T he techniques discussed fall into the four broad categories of: (1) charges on benefiting properties; (2) jo in t ven ture approaches; (3) user charges; and (4) m arketing and m erchandising approaches. C harges on benefiting properties recognize that there are specific beneficiaries who gain from transporta tion im provem ents and include: connector fees, negotiated investm ents, special benefit assessm ent, tax increm ent finan­ cing and im pact requirem ents. Jo in t ventures with the private sector recognize tha t it is m utually advantageous for public and private sectors to cooperate on transporta tion projects and include the techniques of land /a ir rights leasing, donations for capital im provem ents and cost shar­ ing. U ser charges are intended as direct paym ents for services rendered and are classified as m otor vehicle taxes and fees, tolls, com m ercial park ­ ing taxes and taxes on m otor fuels. M arketing and m erchandising ap ­ proaches include advertising and m erchandising. None of the techniques are a panacea for transporta tion finance bu t w here appropria te condi­ tions exist, they can be effectively used to finance the grow ing tran sp o r­ tation needs of ou r nation. IN T R O D U C T IO N T he years ahead are likely to be challenging ones for the tran sp o rta ­ tion profession. In some parts of the country , particularly in the south