Write Up:

For fiscal year 2026, actual state revenue for roads and bridges—derived from motor fuel taxes, motor vehicle sales taxes, driver’s licensing fees, and miscellaneous fees—was 0.5% higher than the budgeted amount. This variance is due to the timing of revenue from incidental and other fees. The 1.5% negative variance for non-highway modes is attributed to the aviation trust fund.

Actual federal revenue for roads and bridges was 5.7% higher than the budgeted amount for federal fiscal year 2025. The negative variance of 53.7% for non-highway modes is attributable to the budget containing spending authority for projects that take multiple years to complete.

The largest source of transportation revenue is the federal government. Funding is received through various federal transportation agencies, including the Federal Highway, Transit, Aviation and Railroad Administrations. In November 2021, the federal transportation bill—the Infrastructure Investment and Jobs Act—was reauthorized. The new bill is estimated to increase federal funding to Missouri by approximately 25% from 2022 to 2026. Federal revenue for other modes depends on the timing of project expenditures.

The primary source of both federal and state revenues is motor fuel tax. Before the passage of Senate Bill 262 that increased the motor fuel tax to 29.5 cents on July 1, 2025, the tax rate had not changed in over 20 years. During that same period, the cost of materials and labor doubled or even tripled in some areas.

Purpose of the Measure:

This measure shows the precision of state and federal revenue budgets.

Measurement and Data Collection:

State revenue for roads and bridges includes motor fuel taxes, motor vehicle and driver licensing fees, motor vehicle sales taxes paid by highway users, interest earnings and miscellaneous revenues. State revenue for other modes includes motor vehicle sales taxes, aviation fuel taxes, jet fuel sales taxes, motor vehicle licensing fees, railroad assessments and appropriations from General Revenue and interest earnings. The measure provides the cumulative, year-to-date percent variance of actual state revenue versus budgeted state revenue by state fiscal year. Federal revenue for roads and bridges is the amount of federal funds available to commit in a federal fiscal year. Federal funds are distributed to states in accordance with federal law. Federal revenue for other modes is the amount reimbursed to MoDOT for expenses incurred in a state fiscal year.

The targets for this measure are set by internal policy and will remain fixed unless the policy changes, regardless of performance.