1 Transportation Policy and Performance: The challenges and opportunities of performance-based programs Deputy Administrator Therese McMillan Federal Transit Administration March 1, 2010

Next Authorization: Why Measuring Performance Will Be Key D emonstrate accountability Measure progress Respond to flexible, multiple mode funding environment 2

3 Measuring Performance Requires Answering Key Questions How many measures? Quantitative or qualitative? Outcomes and/or outputs? Fixed threshold or directional? Incentives or penalties?

A Single Measure Does Not Capture The Whole Story 4 Summary Rating Project Justification Rating Financial Rating Non-Section 5309 Share (20%) Capital Finances (50%) Operating Finances (30%) Other Factors Mobility Improvements (20%) Environmental Benefits (10%) Operating Efficiencies (10%) Cost Effectiveness (20%) Land Use (20%) Economic Development (20%) X X X X X X _ 100 % Former New Starts Funding Decision Rule

The Multiple Measure Approach Provides a More Robust Assessment 5 Summary Rating Project Justification Rating Financial Rating Non-Section 5309 Share (20%) Capital Finances (50%) Operating Finances (30%) Other Factors Mobility Improvements (20%) Environmental Benefits (10%) Operating Efficiencies (10%) Cost Effectiveness (20%) Land Use (20%) Economic Development (20%) Current New Starts Funding Decision Rule

Example: FTA’s “STIC” Program is Based on Performance 6 Small Transit Intensive Cities passenger miles traveled per vehicle revenue mile passenger miles traveled per vehicle revenue hour vehicle revenue miles per capita passenger miles traveled per capita passengers per capita Each factor plays into how much funding a transit agency receives.

Example: US DOT TIGER Grants Projects selected based upon long-term outcomes State of Good Repair Economic Competitiveness Livability Sustainability Safety 7

Example: Partnership for Sustainable Communities 8 Provide more transportation choices Promote equitable, affordable housing Enhance economic competitiveness Support existing communities Coordinate policies and leverage investment Value communities and neighborhoods Guiding Principles

9 Sustainable Communities Partnership: Potential Ideas Goal: Transportation Choices Increase in transit, walk, bike share of trips Change in vehicle miles traveled per capita Percent of new homes built within a ½ mile of high capacity transit service Goal: Economic Competitiveness Percent of employment within a ¼ mile of high capacity transit services Increase in residential units within or close to major employment centers Goal: Equitable Affordable Housing Increased supply of affordable homes and rental units within a ½ mile of high capacity transit service Decrease in household transportation costs Percent of low income households within a 30 minute transit commute of major employment centers Goal: Support Existing Communities Share of new residential and commercial construction on previously developed parcels Decrease in impervious surface per capita Goal: Leverage Federal Investment Shared elements in regional transportation, housing, water, and air quality plans tied to local comprehensive land use or capital improvement plans Dollars of private sector investment within 1/2 mile of high capacity transit Goal: Value Communities Decrease in transportation-related CO2, PM NOx VOC emissions per capita Increase in acres of public recreation and park land per capita

Sustainable Communities Measures Highlights Data Challenges Does the data currently exist? What is the quality and reliability? Who collects and through what mechanism? How much burden is data collection? Are there unintended consequences? 10

Wrap Up: Now What? Performance-based programs are coming (are already here!) Data questions need to be addressed Implementation tactics need to be determined Questions/comments? 11