Public Spending On Transportation And Water Infrastructure .

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CONGRESSIONAL BUDGET OFFICEPublic Spending on Transportationand Water Infrastructure, 1956 to 2017October 2018This publication updates the exhibits in CBO’s report Public Spending on Transportation and WaterInfrastructure, 1956 to 2014 (March 2015), www.cbo.gov/publication/49910.

CBOPublic Spending on Transportationand Water Infrastructure1

CBOPublic Spending on Transportation and Water Infrastructure, 2017Water Transportation( 10 billion)Mass Transit( 70 billion)Highways( 177 billion)TransportationAviation( 37 billion)Water Resourcesb( 29 billion)Rail( 5 billion)Water Utilitiesa( 113 billion)Water050100150200250300350Billions of 2017 DollarsSource: Congressional Budget Office, using data from the Office of Management and Budget and the Bureau of the Census.a. Includes water supply and wastewater treatment facilities.b. Includes water containment systems (dams, levees, reservoirs, and watersheds) and sources of freshwater (lakes and rivers).2

CBOPublic Spending on Transportation and Water Infrastructure UnderAlternative Adjustments for Inflation, 1956 to 2017Billions of 2017 Dollars600500Based onInfrastructure-SpecificPrice Indexesa400441300Based on the GDPPrice 001200620112016Source: Congressional Budget Office, using data from the Office of Management and Budget, the Census Bureau, and the Bureau of Economic Analysis.GDP gross domestic product.a. Those price indexes for government spending measure the prices of materials and other inputs used to build, operate, and maintain transportation and water infrastructure.b. That price index measures the prices of goods and services that make up the nation’s GDP.3

CBOPublic Spending on Transportation and Water Infrastructure as aShare of GDP, 1956 to 2017Percentage of 199119962001200620112016Source: Congressional Budget Office, using data from the Office of Management and Budget, the Census Bureau, and the Bureau of Economic Analysis.GDP gross domestic product.4

CBOThe Federal Government’s and State and Local Governments’Shares of Spending on Transportation and Water Infrastructure, byCategory of Spending, 2017Capital( 174 Billion)State and LocalGovernments: 102 Billion(59%)FederalGovernment: 72 Billion(41%)Operation and Maintenance( 266 Billion)FederalGovernment: 27 Billion(10%)State and LocalGovernments: 240 Billion(90%)Source: Congressional Budget Office, using data from the Office of Management and Budget and the Census Bureau.5

CBOPublic Spending on Transportation and Water Infrastructure, byCategory of Spending, 1956 to 2017Billions of 2017 on and 0620112016Source: Congressional Budget Office, using data from the Office of Management and Budget, the Census Bureau, and the Bureau of Economic Analysis.a. Dollar amounts are adjusted to remove the effects of inflation using price indexes for government spending that measure the prices of materials and other inputs used to build transportation and water infrastructure.b. Dollar amounts are adjusted to remove the effects of inflation using price indexes for government spending that measure the prices of goods and services consumed by governments, including materials and other inputsused to operate and maintain transportation and water infrastructure.6

CBOShares of Public Spending for Capital and for the Operation andMaintenance of Transportation and Water Infrastructure, by Levelof Government, 2017Federal Government( 98 Billion)Operation andMaintenance: 27 Billion(27%)State and Local Governments( 342 Billion)Capital: 102 Billion(30%)Capital: 72 Billion(73%)Operation andMaintenance: 240 Billion(70%)Source: Congressional Budget Office, using data from the Office of Management and Budget and the Census Bureau.7

CBOPublic Spending on Transportation and Water Infrastructure, byLevel of Government, 1956 to 2017Billions of 2017 Dollars400350342300State and Local Governments250200150100985001956Federal 20112016Source: Congressional Budget Office, using data from the Office of Management and Budget, the Census Bureau, and the Bureau of Economic Analysis.Dollar amounts are adjusted to remove the effects of inflation using price indexes for government spending that measure the prices of materials and other inputs used to build, operate, and maintain transportation and waterinfrastructure.8

CBOFederal Spending on Transportationand Water Infrastructure9

CBOFederal Spending on Transportation and Water Infrastructure,1956 to 2017Billions of 2017 DollarsPercentage of Total Federal e: Congressional Budget Office, using data from the Office of Management and Budget and the Census Bureau.Dollar amounts are adjusted to remove the effects of inflation using price indexes for government spending that measure the prices of materials and other inputs used to build, operate, and maintain transportation and waterinfrastructure.10

CBOFederal Spending on Transportation and Water Infrastructure, byType of Infrastructure, 1956 to 2017PercentHighwaysMass Transit and Rail754750250195675755050251966197619861996Water 996aWater 861996200620161966197619861996Water 620062016401956196619761986199620062016Source: Congressional Budget Office, using data from the Office of Management and Budget and the Census Bureau.a. Includes water containment systems (dams, levees, reservoirs, and watersheds) and sources of freshwater (lakes and rivers).b. Includes water supply and wastewater treatment facilities.11

CBOFederal Spending on Transportation and Water Infrastructure, byCategory of Spending, 1956 to 2017Billions of 2017 Dollars120Capitala10080726040Operation and 9962001200620112016Source: Congressional Budget Office, using data from the Office of Management and Budget, the Census Bureau, and the Bureau of Economic Analysis.a. Dollar amounts are adjusted to remove the effects of inflation using price indexes for government spending that measure the prices of materials and other inputs used to build transportation and water infrastructure.b. Dollar amounts are adjusted to remove the effects of inflation using price indexes for government spending that measure the prices of goods and services consumed by governments, including materials and other inputsused to operate and maintain transportation and water infrastructure.12

CBOState and Local Spending onTransportation and WaterInfrastructure13

CBOState and Local Spending on Transportation and WaterInfrastructure, 1956 to 2017Billions of 2017 197619811986199119962001200620112016Source: Congressional Budget Office, using data from the Office of Management and Budget and the Census Bureau.State and local spending is net of federal grants and loan subsidies.Dollar amounts are adjusted to remove the effects of inflation using price indexes for government spending that measure the prices of materials and other inputs used to build, operate, and maintain transportation and waterinfrastructure.14

CBOState and Local Spending on Transportation and WaterInfrastructure, by Type of Infrastructure, 1956 to 2017PercentHighwaysMass Transit and Rail755038257575505025019561966197619861996Water 996Water 1996Water 986199620062016Source: Congressional Budget Office, using data from the Office of Management and Budget and the Census Bureau.State and local spending is net of federal grants and loan subsidies.a. Includes water containment systems (dams, levees, reservoirs, and watersheds) and sources of freshwater (lakes and rivers).b. Includes water supply and wastewater treatment facilities.15

CBOState and Local Spending on Transportation and WaterInfrastructure, by Category of Spending, 1956 to 2017Billions of 2017 Dollars300250240Operation and 1197619811986199119962001200620112016Source: Congressional Budget Office, using data from the Office of Management and Budget, the Census Bureau, and the Bureau of Economic Analysis.State and local spending is net of federal grants and loan subsidies.a. Dollar amounts are adjusted to remove the effects of inflation using price indexes for government spending that measure the prices of goods and services consumed by governments, including materials and other inputsused to operate and maintain transportation and water infrastructure.b. Dollar amounts are adjusted to remove the effects of inflation using price indexes for government spending that measure the prices of materials and other inputs used to build transportation and water infrastructure.16

CBOState and Local Capital Spending on Transportation and WaterInfrastructure, by Source of Funds, 1956 to 2017By SourceBillions of 2017 Dollars602505020040Federal Grants15064100State and LocalRevenues5001956Percentage From Federal 956196619761986199620062016Source: Congressional Budget Office, using data from the Office of Management and Budget and the Census Bureau.Federal grants include the value of federal loan subsidies for the purchase of transportation and water infrastructure capital.Dollar amounts are adjusted to remove the effects of inflation using price indexes for government spending that measure the prices of materials and other inputs used to build, operate, and maintain transportation and waterinfrastructure.17

CBOPublic Spending on Transportationand Water Infrastructure, by Type ofInfrastructure18

CBOPublic Spending on Transportation and Water Infrastructure as aShare of GDP, by Type of Infrastructure, 1956 to 2017Percentage of GDPMass Transit and 0.40.50.50.01956 1966 Water1976Transportation1986 1996 2006 20160.01956 1966 1976 1986 19962006 2016Water Resourcesa0.01956 1966 197619962006 0.50.10.01956 1966 1976 1986 1996 2006 20160.50.20.01956 1966 1976 1986 1996 2006 20160.50.50.20.60.01956 1966 1976 1986 1996 2006 2016Source: Congressional Budget Office, using data from the Office of Management and Budget, the Census Bureau, and the Bureau of Economic Analysis.GDP gross domestic product.a. Includes water containment systems (dams, levees, reservoirs, and watersheds) and sources of freshwater (lakes and rivers).b. Includes water supply and wastewater treatment facilities.19

CBOPublic Spending for Capital and for the Operation and Maintenanceof Transportation and Water Infrastructure, by Type ofInfrastructure, 2017CapitalOperation and Maintenance53%47%HighwaysWater Utilitiesa28%Mass Transit and Rail72%34%Aviation31%bWater Resources 28%66%69%72%36%Water Transportation64%020406080100120Billions of Dollars140160180200Source: Congressional Budget Office, using data from the Office of Management and Budget and the Census Bureau.a. Includes water supply and wastewater treatment facilities.b. Includes water containment systems (dams, levees, reservoirs, and watersheds) and sources of freshwater (lakes and rivers).20

CBOPublic Spending for Capital and for the Operation and Maintenanceof Transportation and Water Infrastructure, by Type ofInfrastructure, 1956 to 2017Billions of 2017 DollarsHighways150Mass Transit and n and19661976Maintenanceb198619962006Water ater 962006201626111966197619861996Water 016Source: Congressional Budget Office, using data from the Office of Management and Budget, the Census Bureau, and the Bureau of Economic Analysis.a. Dollar amounts are adjusted to remove the effects of inflation using price indexes for government spending that measure the prices of materials and other inputs used to build transportation and water infrastructure.b. Dollar amounts are adjusted to remove the effects of inflation using price indexes for government spending that measure the prices of goods and services consumed by governments, including materials and other inputsused to operate and maintain transportation and water infrastructure.c. Includes water containment systems (dams, levees, reservoirs, and watersheds) and sources of freshwater (lakes and rivers).d. Includes water supply and wastewater treatment facilities.21

CBOThe Federal Government’s and State and Local Governments’Spending on Transportation and Water Infrastructure, by Type ofInfrastructure, 2017State and Local GovernmentsFederalHighways26%74%4%aWater Utilities96%Mass Transit and Rail23%Aviation45%bWater Resources35%77%55%65%44%Water Transportation56%020406080100120Billions of Dollars140160180200Source: Congressional Budget Office, using data from the Office of Management and Budget and the Census Bureau.a. Includes water supply and wastewater treatment facilities.b. Includes water containment systems (dams, levees, reservoirs, and watersheds) and sources of freshwater (lakes and rivers).22

CBOThe Federal Government’s and State and Local Governments’Spending on Transportation and Water Infrastructure, by Type ofInfrastructure, 1956 to 2017Billions of 2017 DollarsMass Transit and State and LocalGovernments46Federal Government19661976198619962006Water 2006Water Resourcesa201615001956171966197619861996Water 016019564196619761986199620062016Source: Congressional Budget Office, using data from the Office of Management and Budget, the Census Bureau, and the Bureau of Economic Analysis.Dollar amounts are adjusted to remove the effects of inflation using price indexes for government spending that measure the prices of materials and other inputs used to build, operate, and maintain transportation and waterinfrastructure.a. Includes water containment systems (dams, levees, reservoirs, and watersheds) and sources of freshwater (lakes and rivers).b. Includes water supply and wastewater treatment facilities.23

CBOHow Did CBO Prepare This Update?The Congressional Budget Office updated this material using the methods thatwere described in an appendix to a 2010 report, modified by changes describedin an appendix to a 2015 report. See Public Spending on Transportation andWater Infrastructure (November 2010), www.cbo.gov/publication/21902, andPublic Spending on Transportation and Water Infrastructure, 1956 to 2014(March 2015), www.cbo.gov/publication/49910.Specifically, CBO obtained data about federal outlays from the Office ofManagement and Budget and about state and local governments’ outlays fromthe Census Bureau. CBO then converted those nominal (current-dollar) data intoreal (inflation-adjusted) data, using two sets of price indexes created by theBureau of Economic Analysis that track government expenditures andinvestment. One set of indexes measures the prices of materials and other inputsused by state and local governments to build transportation and waterinfrastructure and was applied to nominal capital spending to convert it intoconstant dollars; the other set measures the prices of materials and other inputsused to operate and maintain that infrastructure and was applied to spending foroperation and maintenance.24

CBONotes and AcknowledgmentsAll years referred to are federal fiscal years, which run from October 1to September 30 and are designated by the calendar year in whichthey end.Numbers in the figures may not add up to totals because of rounding.Detailed spending tables are available as a supplement to thispublication at www.cbo.gov/publication/54539.Nathan Musick prepared this publication with contributions fromJoseph Kile, Jeffrey Kling, Benjamin Plotinsky, Jorge Salazar, ChadShirley, and David Wylie.25

Shares of Public Spending for Capital and for the Operation and Maintenance of Transportation and Water Infrastructure, by Level of Government, 2017. Capital: 102 Billion (30%) Operation and Maintenance: 240 Billion (70%) State and Local Governments ( 342 Billion) Capital: 72 Billion (73%) Operation and Maintenance: 27 Billion (27%) Federal .

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