Either or, it doesn't matter. What matters is that what used to be funds specifically earmarked for those projects are now being diverted into the general fund for other BS, so the money we directly pay via fuel or mileage tax is not 100% going to build/repair/maintain roads. They build green areas with them, bike paths, etc...
That's certainly a legitimate problem. Likewise, using toll road revenues to finance light rail is a misuse of funds.