Title: Methodology for Evaluating the Impacts of Energy, National Economy, and Public Policies on State Highway Financing and Performance
Abstract: Inflationary pressures, stabilizing road-use tax revenues, energy constraints, and recent national automotive policy decisions have created problems which have dramatically affected the highway financing process.The objective of this project was to develop a tool which can be utilized to analyze and estimate the complex interactions between the critical factors influencing state highway financing and their ultimate impact on highway performance, so that the results could enable legislators to make informed decisions regarding this issue.This objective was achieved by the development of a computer simulation model which was extensively tested and applied to the Indiana problem.The computer model utilized the national energy and economic forecasts developed by Data Resources Inc. along with various assumptions regarding legislative options to project a probable range of Indiana highway performance.The results of the model application indicated that an overall deterioration in highway performance can be expected to continue in Indiana as the funds required to stabilize or improve highway performance are enormous.However, the extent of future highway performance deterioration can be regulated by new xi taxing policies, revised highway performance criteria, and governmental promotion of car pooling, mass transit, and other factors that may effectively reduce future highway congestion.The options considered in this study revealed that, although a general decline in highway performance can be expected, appropriate highway policy decisions can assure the sustenance of a tolerable level of highway performance well into the future.