Fiscal Year 2024 FHWA-536 Report for the Kentucky Transportation Cabinet

Every other year, the Federal Highway Administration (FHWA) requires that states submit a Local Highway Finance Report (FHWA-536) to the agency. This report summarizes data on local highway finances and is used by FHWA to evaluate relationships between and changes in revenues, expenditures and investment patterns, and financial trends. This report presents information submitted by Kentucky in its fiscal year (FY) 2024 FHWA-536. Total receipts from local, state, and federal sources used for road and street infrastructure equaled approximately $1.27 billion. Local sources of funding accounted for the largest share of total receipts (50%), followed by state government sources (41%), and the federal government (9%). Total expenditures amounted to $1.20 billion, while local government highway debt at the end of the year was approximately $2.36 billion. Time series analysis of inflation-adjusted data (which capture real purchasing power) for FYs 1999 – 2023 indicated that revenues and disbursements increased gradually over the time period. Both revenues and disbursements jumped dramatically in FY 2023 as a consequence of federal stimulus delivered to states and local governments through the American Rescue Plan Act and Infrastructure Investment and Jobs Act. Compared to FY 2023, revenues and disbursements climbed at a much more subdued rate in FY 2024.