Page:Consideration for Reimbursement for Certain Highways on the Interstate System.pdf/7

 CONSIDERATION FOR REIMBURSEMENT FOR CERTAIN HIGHWAYS ON THE INTERSTATE SYSTEM

SUMMARY

In the Federal-Aid Highway Act of 1956, the Congress indicated its intent to determine whether or not reimbursement should be made to the States for highways, toll or free, completed or put under construction on the National System of Interstate and Defense Highways between August 2, 1947, and June 30, 1957. For that purpose, the Secretary of Commerce was directed to determine which highways might be eligible for consideration for such reimbursement, their cost, and depreciation.

With the cooperation of the State highway departments, the Bureau of Public Roads of the Department of Commerce undertook this study and here reports its findings. Of the 38,548 miles of approved detailed locations on the Interstate System as of September 1957, it was found that 10,859 miles, or 28 percent, met the criteria for consideration for reimbursement. In this mileage were included 1,950 miles of toll roads in 26 States and 8,909 miles of free roads in 47 States. Only 1,955 miles of the 10,859-mile total were fully completed.

The total cost of the highways eligible for consideration for reimbursement amounted to $6.09 billion, of which $2.59 billion was for toll roads and $3.50 billion for free roads. Federal-aid funds accounted for 32 percent of the latter.

Since only highways completed or undertaken in the last 10 years were considered, their average life span was short: 37 percent of the costs represented work under construction or awarded to contract on June 30, 1957; 30 percent represented completed work less than 2 years old; 33 percent represented completed work 2 to 10 years old.

As a consequence, the computed depreciation of the total $6.09 billion cost amounted to only $174 million. The total cost less depreciation for the 10,859 miles eligible for consideration for reimbursement amounted to $5.92 billion, of which $2.52 billion was accounted for in toll roads and $3.40 billion in free roads.

PURPOSE AND SCOPE OF STUDY

The use and scope of this report are set forth in section 114 of the Federal-Aid Highway Act of 1956, which reads as follows:

It is hereby declared to be the intent and policy of the Congress to determine whether or not the Federal Government should equitably reimburse any State for a portion of a highway which is on the Interstate System, whether toll or free, the construction of which has been completed subsequent to August 2, 1947, or which is either in actual use or under construction by contract, for completion, awarded not later, than June 30, 1957: Provided, that such highway meets the standards required by this title for the Interstate System. The time, method, and amounts of such reimbursement, if any, shall be determined by the Congress 1