1. Federal Transportation Improvement Programs Financial Planning and Financial Constraint 2017 FSTIP Workshop Wade Hobbs, FHWA CADO February 9-10, 2016

2. Objectives of Federal Programming Financial Planning and Fiscal Constraint Objectives of Federal Programming A team consensus on the expenditure of available Local, State and Federal funding State – Caltrans Regional - MPO’s / RTPA’s Local - LTC’s Transit Agencies Tribal & Federal - FLMAs & ITGs The Public & Interested Parties

3. Financial Planning and Fiscal Constraint 23 CFR §450.216 and §450.324 The FTIP shall include a financial plan that demonstrates fiscal constraint. The MPO, State and public transit operators shall cooperatively develop estimates of reasonably available funds. The FTIP/FSTIP shall include a project, or a phase of a project, only if full funding can reasonably be anticipated to be available for the project within the time period contemplated for completion of the project. The FTIP/FSTIP must include the estimated total project cost (or cost range), which may extend beyond the four years of the FTIP/FSTIP. For individually listed projects, the FTIP/FSTIP must indicate the amount of Federal funds proposed to be obligated during each program year.

4. Financial Planning and Fiscal Constraint 23 CFR §450.216 and §450.324 In nonattainment/maintenance areas for NAAQS, projects included in the first two years of the TIP/STIP shall be limited to those for which funds are available or committed. The FSTIP must include system-level estimates of costs and revenue sources that are reasonably expected to be available to adequately operate and maintain Federal-aid highways and public transportation. Revenue and cost estimates for the FSTIP must use an inflation rate, developed cooperatively by the State, MPO, and transit operators, and based on reasonable financial principles and information, to reflect “year of expenditure” dollars.

5. Financial Planning and Fiscal Constraint 23 CFR §450.216 and §450.324 Fiscal constraint of the FTIP/FSTIP shall be demonstrated and maintained by year. In the case of “proposed funding sources”, strategies for ensuring their availability shall be identified in the financial plan In cases that the FHWA and the FTA find a FTIP/STIP to be fiscally constrained and a revenue source is subsequently removed or substantially reduced (i.e., by legislative or administrative actions), the FHWA and the FTA will not withdraw the original determination of fiscal constraint. However, in such cases, the FHWA and the FTA will not act on an updated or amended STIP that does not reflect the changed revenue situation.

6. Financial Planning and Fiscal Constraint How it works in California The State distributes Federal apportionments to regions. The State holds each MPO to their annual apportionments by program The MPOs can program up to their annual apportionments The STIP and SHOPP based on Fund Estimates and CTC allocation. The State Managed Programs lists of projects are maintained and provided by the State

7. Financial Planning and Fiscal Constraint How it works in California Lending and borrowing of apportionments is tracked by the State. Obligation Authority is tracked by the State FTIPs and amendments include Financial Summary Tables Statewide financial constraint combines all MPOs and Rural areas financial summaries. MPO board certifies FTIP and amendments are fiscally constrained.

8. FHWA CADO MPO Planning Contacts Planning Program Coordinators: Scott.Carson@dot.gov(916) 498-5029 Cecilia.Crenshaw@dot.gov(916) 498-5033 Wade.Hobbs@dot.gov(916) 498-5027 Michael.Morris@dot.gov(213) 894-4014 Stew.Sonnenberg@dot.gov(916) 498-5889 Planning and Air Quality Team Leader: Jack.Lord@dot.gov(916) 498-5888