During the two-year period covered by this report, conditions have been unusually unfavorable for highway construction work. Labor and materials of all kinds have been difficult to secure, wages and prices have been very high, transportation facilities have been inadequate and many other conditions have operated to interfere with highway construction. During the last year public sentiment has been opposed to the prosecution of construction work and the restrictions imposed by the Federal Government have prevented the undertaking of any extensive program of road improvement. For these reasons the Highway Department has not handled nearly the amount of work that it would have handled under normal conditions, but nevertheless a great stride has been made in the development of Oregon's good roads system, and the Department feels that a fairly good showing has been made. The actual construction work undertaken and completed during the two years consists of fifty miles of paving, one hundred and eleven and eight-tenths miles of macadamizing, one hundred and thirty-four and five-tenths miles of grading and forty bridges and large culverts. In addition to this actual construction work the Department has made surveys of nine hundred and two miles of State roads and has prepared designs for forty-two bridges for county authorities. MONEYS AVAILABLE AND EXPENDED From December 1, 1916, to November 30, 1918, the State Highway Department has had available for expenditure a total of $4,271,515.16 of State and County funds. Of this amount $3,597,982.47 has been expended. These amounts distributed over funds are as follows: =================================+===============+=============== Funds | Amounts | Amounts | Available | Expended ---------------------------------+---------------+--------------- State Funds: | | One-quarter mill tax fund | $ 546,260.51 | $ 528,789.99 Automobile license fund | 575,000.00 | 281,902.67 Six million dollar bond fund | 2,050,045.42 | 2,049,025.47 State and Federal Co-operative | 390,484.44 | 28,539.55 bond fund | | +---------------+--------------- Total State funds | $3,561,790.37 | $2,888,257.68 County funds | 709,724.79 | 709,724.79 +---------------+--------------- Grand total | $4,271,515.16 | $3,597,982.47 ---------------------------------+---------------+--------------- PAVING