STATE AND LOCAL PARTICIPATION
The Committee is of the view that the traditional requirement for local financial participation is sound and should continue. It was pleased to find that the governors’ conference was of the same view. The Committee recommends no change in the matching requirements as presently fixed except for the interstate system and the connecting routes included in the $27 billion program. In the accelerated program, the States would be expected to contribute annually the amount they are required to contribute now to obtain funds from the $175 million made available to the interstate system by the Federal Government. The cities would be expected to participate to the same degree. This would make the cost of the 10-year program to the Federal Government about. $25 billion.
PURCHASE OF EQUITY INTEREST IN EXISTING ROADS
Some States have already constructed sections of the interstate system to the required standards with either State or toll financing and others are proceeding along similar lines. Such construction should not be discouraged by this report since our goal is maximum highway improvement. Those States in which sections of the interstate system have been provided to meet the presently established standards for the completed system should receive appropriate credit, provided such funds are used to improve other roads on established Federal-aid systems or as may be approved by the Federal Government and all other Federal funds for highway purposes have been matched as required. No funds should be made available as a credit for toll roads unless the returns from tolls above financing requirements are used exclusively for road construction as contemplated above.
To limit the Federal liability, credit for roads built between 1947 and 1951 should be limited not only to those sections fully meeting the new standards but also to a maximum of 40 percent of costs other than financing. The credit for those roads completed prior to the calendar year 1955 should be limited to 70 percent of such costs. In no instance would credit be given for Federal funds expended on the road or for toll roads in excess of remaining amortization. Roads built at a later date should be credited at full cost.
The funds thus made available to the States will not only encourage matching of available funds but will also make possible accelerated improvement of primary, secondary, and other roads, and will encourage local financing of interstate mileage to make funds available for other roads without increasing total Federal responsibility. They will be paid to the States only as required to meet the costs of projects approved for construction and, it thus appears, would provide a major incentive to the highway improvement program as a whole.
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