Federal Funding Streams

What are we working with at the state and local levels?

Federal Funding Basics

Federal Fuel Taxes

Heavy Vehicle Taxes

Tire Tax

Congress

Title 23 - Highway Title 49 - Transit

Requirements

Projects must be included in the approved Statewide Transportation Improvement Program (STIP) and, in Urbanized Areas (UZAs), the metropolitan transportation plan (Plan) and Transportation Improvement Program (TIP).

49 USC Chapter 53 governs transit

Planning and operations standards

Specific programs and funding

Formula funding

Funding – Title 49

Federal Transit Administration (FTA)

Section 5307 (MPOs) Large Urban Formula ($$$/Rev-Mile, NTD) Small Urban Formula ($$$/Rev-Mile, NTD)

Section 5311 (State DOTs) Rural (A, B & C categories)

Other Job Access & Reverse Commute

• 49 USC 5307 – Urban Formula Funding– Formula funds for systems operating in areas with a

population greater than 200K– 80/20 federal share (adjust for federal lands)– Annual appropriation– Capital costs only

Funding– Title 49

• 49 USC 5340 – Growing and High Density

– Additional funding for areas meeting any of six performance characteristics

– Funding attached with 5307 funding

Funding– Title 49

Where does the Formula $$$ go?

STIC1%Rural

9%

Urban Rail30%

Large Urban Bus39%

Small Urban Bus15%

Incentive Tier6%

• 49 USC 5311 – Formula grants for other than urbanized areas

– Formula funding for areas less than 200K

– Capital plus some eligible operating expenses

– Some set-asides for intercity bus, tribal transportation, and technical assistance

– % share changes based on project

Funding– Title 49

FTA Section 5311 Eligibility

Areas not currently in UZA are eligible for Sec. 5311 funding, even if they are included in metro area planning boundary (which includes the air quality non-attainment boundary)

Projects may include transportation TO and FROM urbanized areas

Service area may include destinations ACROSS a state line

Category A Category B Category C – “Program Reserve”

State may not assign more than 10% of Section 5311 program to Category C

FTA Section 5311 Eligibility

• Other programs that may be mentioned– 5310 Elderly & Disabled

– 5317 New Freedoms (disabled)

– 5316 JARC• More strings than other funding sources• 50/50 Operating, 80/20 Capital only

Funding – Title 49

• Certain highway funds can be “flexed” to cover projects defined as transit– National Highway System (NHS)– Surface Transportation Program (STP)– Congestion Mitigation and Air Quality Program (CMAQ)

Funding– Title 23

Federal Highway Administration(FHWA)

Funds May be Used for Highway or Transit Purposes

National Highway System (NHS) Interstate Maintenance (IM) Surface Transportation Program (STP) Highway Bridge Replacement and Rehabilitation (HBRRP) Congestion Mitigation and Air Quality Improvement

Program (CMAQ) Transportation, Community, and System Preservation

Program (TCSP)

• National Highway System– May be flexed to transit projects meeting program criteria

(improvements or maintenance on interstates)– Most applicable option: major reconstruction project

mitigation

Funding– Title 23

• Surface Transportation Program (STP)– Discretionary on part of recipient as to type of project– Any project meeting FTA criteria is eligible

Funding– Title 23

• Congestion Mitigation and Air Quality Program (CMAQ)– Funding focused on areas not meeting air quality

standards– Most frequently used funding source for TDM projects– Depending on the project, may have a time limit on use

Funding– Title 23

• Note: States may choose to move NHS and other highway funds into the STP program, and then use those funds for transit projects

Funding– Title 23

So how is this money then spent?

• It all depends on who is receiving it and what the plan says…

Funding & Planning Overview

• Funding is split by formula between states and metropolitan regions

– State funding to DOTs– Metropolitan funding goes to Metropolitan Planning

Organizations (MPOs)

Planning Overview

• Metropolitan Planning Organizations (MPOs)– Must be designated by the state to cover major metros– Each has their own project selection process and

involvement to meet federal criteria, end result is embodied in the Transportation Improvement Plan (TIP)

Planning Overview

• State DOTs– Generally have their own planning section responsible for

the state TIP– Frequently generic, project selection is often done through

the state legislature off of a project selection list provided by the DOT

Planning Overview

• So how do we interact with the TIP/STIP?– Have the most recent document with project lists on hand– Research who the project selection committee is and

what their process is– Pay attention to the meeting notices

Planning Overview

• Note:– TIPs/STIPs only cover highway and discretionary transit

projects– Projects using formula funds (5307) are at the discretion

of the receiving transit agency, therefore must find a transit improvement plan or transit development plan to determine agency intent

Planning Overview

• Know the state DOT structure• Know the transit agencies• Know who the MPOs are• Be willing to work in multiple formats

So where do I start?

State & Local Communication

How do I take what I know and make it work for me?

State Legislature

To borrow a phrase: it’s similar but different

Similarities: 2 chambers Regular schedule Process for passage involving both

chambers and executive veto possibility Differences:

Limited Schedules More bill procedure (i.e. leadership

control of calendar) Less staff support

Session Calendars

State Legislative Process is more involved

Idea Formed Author Writes Bill

First Reading or

Introduction

Committee Hearings

Second and Third

Readings

Repeat Process in the other

House

Resolution of Differences

Governor’s Signature

State Legislative Process is more involved

Idea Formed Author Writes Bill

First Reading or

Introduction

Committee Hearings

Second and Third

Readings

Repeat Process in the other

House

Resolution of Differences

Governor’s Signature

State DOT basics

Responsible for all federal highway funds outside of designated metropolitan areas Level of responsibility within metropolitan areas

varies based on state law and appropriations Responsible for all federal transit funds outside

of designated metropolitan areas Constrained with JARC, New Freedoms to those

projects contained within Consolidated Human Service Plans

Must have a State Transportation Improvement Program (TIP) Although yearly program funds may be appropriated

by Legislature first

State DOT basics

Planning, Transit, and Finance are often completely separate groups Developing friends or internal advocates is

key May delegate responsibilities on a

regional basis Not enough to just know the folks at HQ

State funding programs vary widely Take the time to educate yourself on the

funding streams

MPO basics

Designated by Governor to receive federal transportation funding, both highway and transit Best list currently available at

www.ampo.org/directory/index.php Required to have a Metropolitan Transportation

Improvement Program and a Consolidated Human Services Plan

May have responsibilities that go well beyond transportation Long Range Planning Zoning and Land Use Water/Sewer

MPO basics

Governance frequently done by some sort of city/county representation Current requirements for regular, formal

citizen outreach often conducted through a committee

Requirement of a transit technical committee No requirement for proportionate

representation MPO TIP governs the use of transit funds

Important point, as many MPOs simply follow the transit program for funding to the point of simply having one line item for transit monies

Communication basics remain the same

Your method of communication depends on the message

Volume ≠ Effectiveness Don’t assume they know you or your

issue, even if you’ve met with them before

Be specific Be a resource Be polite and patient, but do follow-up Don’t vilify the opposition

Beyond the basics

1. Know who you are dealing with

Each state DOT has an assigned person/group to deal with your issue (even Tennessee)

Each MPO has someone assigned to the planning division to work with transit agencies and/or someone to manage the TIP process

Know who these folks are and how they fit into the hierarchy of their organization

2. You have a right to be at the meeting

Frequent, open meetings offered at DOT level Planning Commission TIP input State Conferences

MPO requirement for input from citizens and technical committees Public notice on meeting places and times

3. The important part of the meeting isn’t the meeting

Who is sitting around the table? What are the qualifications for

being at the table? Are these people you already

meet with regularly, or whose subordinates you already meet with?

“make friends and influence people”

If you can help someone do their job more effectively, they will make the time to listen to you

4. Know as much or more than the folks you are dealing with

Become a resource for them to help solve their problems

Be consistent in your explanations of programs, funding, and barriers

Note what is working, not just what isn’t working

Know their issues as well as your own

5. Don’t be afraid of the guys in the suits

Government is simply a different business model Non-profit Public shareholders

Job responsibilities, just like you

Goals and objectives, just like you

At the end of the day, is trying to get something done or a need met