Roadway costs are often greater than indicated by current expenditures due to deferred
maintenance. Annual roadway expenditures would need to increase at least 13% to maintain
current system performance. New public accounting requirements (GASB Statement 34)
may in the future provide additional information on the value of roadway facilities and costs
associated with deferred investments. Roadway agencies tend to undervalue capital costs
compared with what is indicated by standard accounting procedures because capital
expenditures are treated as current costs and all past expenditures are considered sunk.16
Applying business principles, road users would be charged for capital expenditure return on
investment. As described by Lee