Increased costs for building, repairing and maintaining highways combined with norman deterioration and a decrease in anticipated revenues have placed the transportation system of the United States in jeopardy. The condition of highway pavements in particular has rapidly declined during the past several years. State transportation agencies are coping with fiscal constraints by making more efficient use of existing resources, reducing the scope of transportation services and finding additional or new sources of funding. Good cash flow management is essential. Other financial management strategies likely to be successful are those that (a) address the underlying cause of the fiscal shortfalls, (b) are based on sound analysis of total transportation requirements and options and (c) have the cooperation and support of the decision-making and user groups.
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