Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations (2022)

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A-1   Case Study Questionnaires NCHRP 19-16 Study: Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation Key Areas of Impact Interview Guide WSP is conducting research on behalf of the National Cooperative Highway Research Program (NCHRP) on the impacts of federal funding uncertainty in state, local, and regional departments of transportation and the strategies to mitigate these impacts. This study will provide state trans- portation departments with useful knowledge of the effects of federal funding uncertainty on five key areas (long-range transportation planning, asset management, system operational manage- ment, economic impacts, and performance requirements), as well as other areas that may emerge through the research. The study will also identify what strategies DOTs and other transportation agencies adopt to deal with and limit the extent of the impact of funding uncertainty, both gen- erally and regarding these five key areas. To accomplish this, WSP is evaluating the state of the practice by conducting case studies of state DOTs and other surface transportation agencies. The final product of this research will consist of a report documenting its findings, including a series of four white papers that will help state DOTs and other surface transportation agencies to develop and implement effective policies and strategies to mitigate the impacts of federal funding uncertainty. This report and supporting infographics and presentations will also inform decision- makers, including elected officials, of the impacts of federal funding uncertainty. For the purposes of this research, “federal funding uncertainty” encompasses the timing and amount of federal funds being distributed to states/transportation agencies, including if and when the full amount expected in the current year will be received, and whether future funding amounts will change from what they have been in the past. The research team will not directly quote individuals and will aggregate sensitive comments so that they are not directly attributable to the project or agency. A.1 Planning and Programming Impacts of Federal Funding Uncertainty 1. What have been the most significant impacts of federal funding uncertainty on your depart- ment’s activities, particularly those that require knowledge of future funding levels within required time horizons, like long-range planning? 2. How do you stay abreast of the status of federal funding availability, timing, and amount within the congressional appropriations/authorizations/obligation processes? 3. How have the procedures and policies in your department/division changed over the past 10–15 years because of federal funding uncertainty? A P P E N D I X A

A-2 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations 4. How does this information circulate through your organization, and how does it affect the planning process in your department and in the organization as a whole? 5. What trends, if any, affect your need for or reliance on federal funding and may make the effects of federal funding uncertainty more significant? Examples include the allocation of state funds to new capacity, technology changes that might affect gas consumption, transit investments, or changes in systems operations and maintenance. Has funding uncertainty had any impact so far on your allocation of funds for these purposes? 6. Have condition predictions prepared by your organization been affected by uncertainty in future federal funding levels? If so, how has it affected strategic planning and decision making? 7. Please describe how federal funding considerations (level, delays, other uncertainties) factored into consideration of toll road development or adding tolls to existing facilities, if at all. Strategies to Mitigate Federal Funding Uncertainty 8. How, if at all, does your department/division mitigate impacts of federal funding uncer- tainty? What are other departments/divisions you coordinate with when taking action to mitigate the impacts, and how do you coordinate with them? 9. Do you do any economic analyses on your federal funds management decisions (e.g., the impact of delaying preservation vs. construction)? 10. Regarding uncertainties in both the amount (contract authority) and timing of the availability of federal funds, has your agency considered or implemented the following risk management strategies? Please describe specific circumstances in which these strategies were used, and their outcomes. a. Adjustments in short-term or long-term project planning and project selection b. Canceling or postponing projects c. Significant project scope/scale adjustments d. Other (please explain) 11. What other strategies does your division/team use to manage federal funding uncertainty? 12. Have you encountered any barriers when trying to implement any of the above strategies? If so, how did you address them? Lessons Learned 13. Tell us about a challenge that your department/division has faced caused by federal funding uncertainty and how it was addressed. 14. What do you expect to do differently in response to future funding uncertainty? 15. Is there anything else you would like to add or any documentation you could provide to the research team illustrating your agency’s response to uncertainties in federal transportation funding? A.2 Asset Management Impacts of Federal Funding Uncertainty 1. Please describe how federal funding considerations have affected asset management and other work activities that require knowledge of future funding levels within required time horizons. What have been the most significant impacts of funding uncertainty on your depart- ment’s activities? 2. How do you stay abreast of the status of federal funding availability, timing, and amount within the congressional appropriations/authorizations/obligation processes? 3. How have the procedures and policies in your department/division changed over the past 10–15 years because of federal funding uncertainty?

Case Study Questionnaires A-3   4. From your department’s/division’s perspective, has uncertainty regarding federal funding had an effect on the value, usefulness, difficulty, etc., of meeting federal requirements such as asset management and state of good repair? 5. Have you seen any trends in your work that could affect your need for or reliance on federal funding and may make the effects of federal funding uncertainty more significant? Examples include the addition of new infrastructure or new capacity, technology changes that might affect asset management, transit investments, or changes in systems operations and main- tenance requirements. Strategies to Mitigate Federal Funding Uncertainty 6. What strategies does your division/team use to manage federal funding uncertainty? Has your agency considered or implemented any of the following risk management strategies? Please describe specific circumstances in which these strategies were used, and their outcomes. a. Adjustments in short-term or long-term project planning and project selection b. Canceling or postponing projects c. Significant project scope/scale adjustments d. Other (please explain) 7. What other strategies does your division/team use to manage federal funding uncertainty? 8. Have you encountered any barriers when trying to implement any of the above strategies? If so, how did you address them? 9. What are other departments/divisions you coordinate with when taking action to mitigate the impacts, and how do you coordinate with them? 10. Do you forecast or model the potential impact of federal funding uncertainty in order to determine which mitigation strategies to use? Lessons Learned 11. Tell us about a challenge that your department/division has faced caused by federal funding uncertainty and how it was addressed. 12. What do you expect to do differently in the future in response to future funding uncertainty? 13. Is there anything else you would like to add or any documentation you could provide to the research team illustrating your agency’s response to uncertainties in federal transportation funding? A.3 System Operational Management Impacts of Federal Funding Uncertainty 1. What have been the most significant impacts of changes in funding uncertainty on your department’s activities? 2. How do you stay abreast of the status of federal funding availability, timing and amount within the congressional appropriations/authorizations/obligation processes? 3. How have the procedures and policies in your department/division changed over the past 10–15 years because of federal funding uncertainty? 4. What impact, if any, has federal funding uncertainty had on economic sectors in your state/ region affected by the operations of state infrastructure, including for instance construc- tion or freight and delivery logistics? Has federal funding uncertainty led to a measurable economic impact? 5. From your department’s/division’s perspective, has uncertainty regarding federal funding had an effect on the value, usefulness, difficulty, etc., of meeting federal requirements such as resilience and risk management?

A-4 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations 6. What trends, if any, affect your need for or reliance on federal funding and may make the effects of federal funding uncertainty more significant? Examples include the allocation of state funds to new capacity, technology changes that might affect gas consumption, transit investments, or changes in systems operations and maintenance. Strategies to Mitigate Federal Funding Uncertainty 7. How, if at all, does your department/division mitigate impacts of federal funding uncer- tainty? What are other departments/divisions you coordinate with when taking action to mitigate the impacts, and how do you coordinate with them? 8. Do you forecast or model the potential impact of federal funding uncertainty in order to determine which mitigation strategies to use? Do you do any economic analyses on your federal funds management decisions (e.g., the impact of delaying preservation vs. construction)? 9. What strategies does your division/team use to manage federal funding uncertainty? 10. Have you encountered any barriers when trying to implement any of the above strategies? If so, how did you address them? 11. Has your agency communicated the risks of federal funding uncertainty, its impacts, and any mitigation strategies to policymakers and/or the public? If so, what has the impact of this communication been? Lessons Learned 12. Tell us about a challenge that your department/division has faced caused by federal funding uncertainty and how it was addressed. 13. What do you expect to do differently in response to future funding uncertainty? 14. Is there anything else you would like to add or any documentation you could provide to the research team illustrating your agency’s response to uncertainties in federal transportation funding? A.4 Federal Performance Requirements Impacts of Federal Funding Uncertainty 1. What have been the most significant impacts of federal funding uncertainty on your depart- ment’s activities? 2. How do you stay abreast of the status of federal funding availability, timing and amount within the congressional appropriations/authorizations/obligation processes? 3. How have the procedures and policies in your department/division changed over the past 10–15 years because of federal funding uncertainty? 4. Please describe how federal funding considerations have affected fiscal constraint, perfor- mance management, asset management and other work activities that require knowledge of future funding levels within required time horizons. 5. From your department’s/division’s perspective, has uncertainty regarding federal funding had an effect on the value, usefulness, difficulty, etc., of meeting federal requirements such as fiscal constraint, performance management, performance prediction, or resilience and risk management? 6. What trends, if any, affect your need for or reliance on federal funding and may make the effects of federal funding uncertainty more significant? Examples include the allocation of state funds to new capacity, technology changes that might affect gas consumption, transit investments, or changes in systems operations and maintenance.

Case Study Questionnaires A-5   Strategies to Mitigate Federal Funding Uncertainty 7. How, if at all, does your department/division mitigate impacts of federal funding uncer- tainty? What are other departments/divisions you coordinate with when taking action to mitigate the impacts, and how do you coordinate with them? 8. Do you forecast or model the potential impact of federal funding uncertainty in order to deter- mine which mitigation strategies to use? Do you do any economic analyses on your federal funds management decisions (e.g., the impact of delaying preservation vs. construction)? 9. What strategies does your division/team use to manage federal funding uncertainty? 10. Have you encountered any barriers when trying to implement any of the above strategies? If so, how did you address them? Lessons Learned 11. Tell us about a challenge that your department/division has faced caused by federal funding uncertainty and how it was addressed. 12. What do you expect to do differently in response to future funding uncertainty? 13. Is there anything else you would like to add or any documentation you could provide to the research team illustrating your agency’s response to uncertainties in federal transportation funding? A.5 Economic Impacts Impacts of Federal Funding Uncertainty 1. What have been the most significant impacts of changes in funding uncertainty on your department’s activities? 2. What impact, if any, has federal funding uncertainty had on economic sectors in your state/ region, including for instance construction or freight and delivery logistics? Has federal funding uncertainty led to a measurable economic impact? 3. What trends, if any, affect your need for or reliance on federal funding and may make the effects of federal funding uncertainty more significant? Examples include the allocation of state funds to new capacity, technology changes that might affect gas consumption, transit investments, or changes in systems operations and maintenance. Strategies to Mitigate Federal Funding Uncertainty 4. How, if at all, does your department/division mitigate impacts of federal funding uncer- tainty? What are other departments/divisions you coordinate with when taking action to mitigate the impacts, and how do you coordinate with them? 5. Do you forecast or model the potential impact of federal funding uncertainty in order to deter- mine which mitigation strategies to use? Do you do any economic analyses on your federal funds management decisions (e.g., the impact of delaying preservation vs. construction)? 6. What other strategies does your division/team use to manage federal funding uncertainty? 7. Have you encountered any barriers when trying to implement any of the above strategies? If so, how did you address them? 8. What transportation funding (federal/state/local) reforms would you suggest to overcome any issues you experienced? Lessons Learned 9. How have the procedures and policies in your department/division changed over the past 10–15 years because of federal funding uncertainty?

A-6 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations 10. What do you expect to do differently in response to future funding uncertainty? 11. Is there anything else you would like to add or any documentation you could provide to the research team illustrating your agency’s response to uncertainties in federal transportation funding? A.6 Financial Management Gathering and Using Information on Federal Funding Uncertainty 1. Please discuss the role of the agency’s government relations staff in tracking federal funding availability, timing and amount within the congressional appropriations/authorizations/ obligation processes. 2. Has your agency communicated the risks of federal funding uncertainty, its impacts, and any mitigation strategies to policymakers and/or the public? If so, what has the impact of this communication been? Financial Management 3. What sources of federal highway funding does the agency have access to and how are they distributed in the region/state? 4. At what level does your organization program funding: apportionment or obligation? 5. What percentage of your construction and maintenance programs are supported by federal funding? Are these activities affected differently by uncertainty in federal funding? 6. How much of the federal funding you receive is shared with local governments, transit agen- cies, state police, or other agencies outside the DOT? If there is a “pass-through” of federal funds to local roads, is that funding subject to uncertainty, or does the DOT commit to a specific federal share to local partners? 7. At what point, if ever, did you become concerned about the reliability of federal funding with timely annual appropriations at fully authorized federal funding levels? 8. Have you considered increasing reliance on state and local funds, general funds and other non-transportation-related funding sources for your agency? 9. Have federal transportation funding constraints affected the enactment of state or local revenue measures in your region/state? If so, what messages/strategies were used to support passage of the revenue measure? Strategies to Mitigate Federal Funding Uncertainty 10. Please describe any instances in which funding for specific projects was shifted either among Federal-Aid categories or between federal and state funding because of federal funding limitations or uncertainty, including rescissions. 11. How often in a typical year does your agency receive federal funding? Does it come at regu- larly scheduled intervals and in consistent amounts? If not, what level of uncertainty do you have with federal receipts and how do you mitigate that uncertainty? 12. To what degree has your region been “insulated” from the risks associated with reliable, sustainable Federal-Aid by virtue of the percentage of total state expenditure represented by Federal-Aid? How did any of the following characteristics of the Federal-Aid funding process help insulate your state? a. “Advance funding” b. Carryover contract authority c. Categorical flexibility d. Guaranteed minimums

Case Study Questionnaires A-7   e. Advance construction f. Other (please describe) 13. Regarding uncertainties in both the amount (contract authority) and timing of the availability of federal funds, has your agency considered or implemented the following risk manage- ment strategies? Please describe specific circumstances in which these strategies were used, and their outcomes. a. Adjustments in short-term or long-term project planning and project selection b. Adjustments in the design, procurement, or letting schedule c. Adjustments to the funding mix (e.g., greater use of nonfederal funds or additional debt financing) d. Canceling or postponing projects e. Significant project scope/scale adjustments f. Other (please explain) Lessons Learned 14. How have procedures and policies evolved over the past 10–15 years as a result of federal funding uncertainty? 15. What do you expect to do differently in response to future funding uncertainty? 16. Is there anything else you would like to add or any documentation you could provide to the research team illustrating your agency’s response to uncertainties in federal transportation funding?