Distributing State Road Use Tax Funds to Counties

David J. Forkenbrock
Lisa A. Schweitzer
December 1996

In July 1995 a group of county engineers met with researchers at the University of Iowa Public Policy Center to discuss the possibility of studying alternative approaches to distributing state transportation funds among Iowa counties. The challenge they proposed was intriguing: to design an allocation approach that is stable, comprehensible, predictable, and sensitive to the diverse nature of the state's 99 counties. At the end of the discussion, the Center agreed to develop a proposal outlining an approach to the study. Ultimately, the proposal was funded by the Iowa Highway Research Board (HRB), and work commenced late in 1995.

From the very beginning it was clear that this project would need to be a collaborative effort involving not only university researchers but also a representative sample of engineers from diverse counties. Mark Nahra, chair of HRB, formed an advisory committee that included county engineers from all parts of the state; from urban and rural counties; and from counties that vary in terms of terrain, drainage basins, and other significant attributes. Throughout the study, the advisory committee played an active role, discussing each technical issue that emerged.

In the end, an allocation approach emerged that contains six factors. Both the factors included and the relative weights attached to them were products of technical analysis and compromise. Allocations to one type of county had to be balanced with those to another. The approach that emerged received strong support at a meeting of the Iowa Association of County Engineers in October 1996.

Although this project entailed hundreds of computer runs and a very large database, it was much more than a technical exercise. At the heart of the project was a highly qualified, diverse advisory committee that made a substantial contribution of ideas and time. Through discussions that were at times intense, the advisory committee helped guide the project to the point where a recommended allocation procedure could be produced.

$12.95, 75 pp., 17 figures, perfect bound