Disposition of Federal Transportation Revenues

The federal government provided a total of $1,053 million in road funding in FY2006. Figure 4 provides a depiction of the various categories of federal funds and how they are distributed for various state and local programs. Additional federal monies went to mass transit. Under state law, Michigan divides federal money 75/25 with 75 percent going to state owned roads and 25 percent going to county/city roads. In FY2006 the state system received $765.7 million while the locals received $295.3 million. Michigan’s dedication of a portion of federal road funds to county/city roads is somewhat unusual because most states keep a larger share of federal funds for state roads.