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Published byDwayne Sharp Modified over 8 years ago
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INTRODUCTION TO FEDERAL HIGHWAY FUNDING AND ELIGIBILITY Steve Baumann Financial Specialist (503) 587-4729 Mike Morrow(Field Operations Engineer)503-5874708Mike Morrow(Field Operations Engineer)503-5874708
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EXPECTATIONS Characteristics of the FAHP Legislation Responsibilities Major funding requirements Discretionary – Earmarked funds
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Characteristics of the Federal-Aid Highway Program State Administered, Federal Stewardship Funding tied to specific “systems” Requires States to have Highway Agency or locals to have responsible individual States/locals pay for routine maintenance Matching requirements Reimbursable program
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Review and approve state/local proposals Develop regulations and guidance Promulgate standards Provide technical assistance Distribute line of credit Reimburse States their eligible expenses State DOT Apportionment or Allocation Federal, State and Local Relationship Federal Responsibilities
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Federal, State and Local Relationship State and Local Responsibilities Conceive, prioritize, plan, design, and construct projects Maintain and operate highways
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Safe, Accountable, Flexible, Effient Transportation Equity Act –A Legacy for Users (SAFETEA-LU) Highways, highway safety, transit 5-year legislation - 2005-2009 Signed into law August 10, 2005 (P. L. 109-59) $244 billion authorized over 5 years (12% increase over TEA-21) Highways - $193 billion Transit - $51 billion
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Highway Trust Fund SAFETEA-LU of 2005 Extended authorization for FY2005-2009 Extended HTF through FY 2011 Congress added eight billion with hopes of getting through 2009
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State Request, Federal Approval Commits State’s Line of Credit Commits Federal Government to Reimburse State Based on Estimates Protects Funds from Lapsing Traditional Point of Budgetary Control Obligations
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Obligation Limitation (Obligation Ceiling) What is it? Who does it? Why? A budgetary mechanism to control Federal spending Congress -- through legislation To be responsive to current budget policies
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Obligation Limitation Characteristics Applies Total to Program State-by-State Limit Sept 2001 Oct 2000 Good for 1 Year 1 30
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State submits FHWA sends State pays contractor voucher to FHWA to Treasury Treasurer wires money to State Contractor does work State pays LPA State submits voucher to FHWA FHWA sends to Treasury Treasurer wires money to State LPA pays Contractor Time ActionsActions Reimbursement
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Functional Classification Eligibility for Federal Financial Assistance IneligibleEligible Local - 76% Interstate - 1% (Included in NHS %) NHS - 4% Other - 20% Out of 3.9 million miles of roads in the U.S., less than 1 million miles are eligible for federal financial assistance.
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General Eligibility Roadways eligible for Federal-aid funding: publicly owned and open to public be functional classified higher than rural minor collectors or local roadways meet the requirements of the specific Federal funding program
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General Categories of Federal-aid Funds Interstate Maintenance (IM) National Highway System (NHS) Surface Transportation Program (STP) Highway Bridge Program Congestion Mitigation & Air Quality (CMAQ) Emergency Relief Discretionary Programs Earmarked Projects
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Discretionary Division office authorization Apply (subsequent FHWA approval)
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Discretionary Corridors & Borders Innovative Bridge Research and Construction National Historic Covered Bridge Program Public Lands Highways Ferry Boats Scenic Byways Transportation and Community and System Preservation Pilot Program (TCSP) Highways for Life Truck Parking, and Value Pricing
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Earmarked Funds Law may define eligible activities Reverts to program requirements Written in law Law makes funds available Does NOT authorize project!!! May have to apply (discretionary) Needs FHWA authorization May not get all of funds, or in one year!
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LPA Advertising for Bids “THOU SHALT HAVE AN FHWA AUTHORIZATION IN THY HANDS PRIOR TO ADVERTISING FOR BIDS” (or spending any money)
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Local Responsibilities and Expectations for LPA projects l Knowledge of Federal-aid requirements l ODOT/Local Partnership: early, continuous communication and coordination needed. l ODOT/LPA knowledge of what is happening on LPA projects (funding, work progress, inspections, etc)
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Local Responsibilities and Expectations for LPA projects l ODOT provides oversight of Local Agencies and is not relieved of its responsibilities for LPA projects’ compliance with Federal regulations l Certification program allow LPAs to use their own procedure, forms, etc., but does not relieve them or ODOT of the responsibility to comply with all Federal and State regulations and laws
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