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From page 79... ... B-1 Case Studies B.1 Missouri DOT Case Study B.1.1 Introduction This case study report includes background on the organization and management of transportation systems in the state of Missouri, impacts of federal funding uncertainty on functional areas of MoDOT, strategies Missouri applies to mitigate the impacts, and key findings of this case study. Missouri was selected as one of the six case studies because it is a moderately populated state, has moderate levels of federal funding but low state funding support for transportation relative to other case study states, and has a moderate number of public roads per capita. Read the entire page →
From page 80... ... B-2 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations cause a cascading effect on MoDOT's program; asset management projects that are delayed due to funding uncertainty will continue to deteriorate and become more costly to fix as time progresses. MoDOT is also concerned about long-term federal funding uncertainty due to Highway Trust Fund insolvency. Read the entire page →
From page 81... ... Case Studies B-3 uncertainty or inadequacy. Table B-3 displays an example of this from the FY20–FY24 STIP and shows the total programmed amount, number of bridges, and total lane miles in each MoDOT region that are at risk of not being completed due to federal funding uncertainty or inadequacy. Read the entire page →
From page 82... ... B-4 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations appropriations processes. It also relies on AASHTO and the FHWA as important sources of information on federal legislative activity. Read the entire page →
From page 83... ... Case Studies B-5 STIP. Generally, the agency uses historical trends to estimate where the state will be relative to its current position, rather than placing a specific focus on levels of funding. Read the entire page →
From page 84... ... B-6 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations B.1.3.4 Design and Construction Approximately 80% of Missouri's construction program is federally funded. Federal funding uncertainty impacts the design and construction program at MoDOT primarily by creating inefficiencies in project delivery, some of which have already been noted. Read the entire page →
From page 85... ... Case Studies B-7 better leverage investment efforts to deliver transportation improvements. The local funds leveraged for cost share projects increase available funds for transportation. Read the entire page →
From page 86... ... B-8 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations B.1.4 Strategies to Mitigate Federal Funding Uncertainty The following section describes the strategies used by MoDOT to respond to and mitigate the impacts of federal funding uncertainty. The strategies are organized based on their function in Table B-4 as being financial, contractual, or programmatic. Read the entire page →
From page 87... ... Case Studies B-9 • Reducing Scope and Timelines. MoDOT prides itself on making every dollar count and its conservative approach to project delivery. Read the entire page →
From page 88... ... B-10 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations B.2 South Dakota Case Study B.2.1 Introduction This case study report includes background on the organization and management of transportation systems in the state of South Dakota, impacts of federal funding uncertainty on functional areas of the South Dakota Department of Transportation (SDDOT) , strategies South Dakota applies to mitigate the impacts, and key findings. Read the entire page →
From page 89... ... Case Studies B-11 in the amount of funding received during the August Distribution and other programs can at times create additional work for SDDOT field office staff and contractors as they work to deliver unanticipated funds before the sunset dates on those funds. While this uncertainty can impact certain processes the department undertakes, to date, federal funding has always eventually been made available at, or near expected levels. Read the entire page →
From page 90... ... B-12 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations fuel taxes, but a sizable amount of state funds come from the motor vehicle excise tax. In 2015, South Dakota's legislature voted to increase the state's motor fuel tax from 22¢ per gallon to 28¢ per gallon, placing it above the national average of 26.5¢ per gallon as of January 2016 (EIA 2016) Read the entire page →
From page 91... ... Case Studies B-13 SDDOT is conservative when forecasting for the STIP, using allocations provided by the current federal transportation authorization act to forecast and then flatlining estimates beyond its expiration. These flatline funding estimates are outpaced by projected inflation in project costs, which, if it comes to pass, means fewer projects will have the necessary funding in future years. Read the entire page →
From page 92... ... B-14 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations meet the 3-year obligation deadline for those funds and is relying on consultants to help meet the deadline. Generally, the agency passes state funds rather than federal funds to local governments to allow for greater flexibility in planning their projects. Read the entire page →
From page 93... ... Case Studies B-15 and workforce for that year. This uncertainty has a long-term impact on technologies the agency and their partners use to deliver projects; without certainty in the timing and amount of federal funds, it is difficult for contractors to invest in new technologies and materials without taking on more risk. Read the entire page →
From page 94... ... B-16 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations government began to require performance reporting out of state DOTs, SDDOT simply had to change its reporting formats because the data collection mechanisms were already in place. SDDOT also easily meets federal bridge and pavement performance standards because the state's own performance metrics are more rigorous. Read the entire page →
From page 95... ... Case Studies B-17 to the timing of federal authorizations or appropriations. However, this tool does carry the risk that the state will not be reimbursed if expected funding amounts are not made available. Read the entire page →
From page 96... ... B-18 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations • Program for Uncertain Funds. SDDOT's team programs projects in the STIP to take advantage of competitive programs like BUILD and INFRA. Read the entire page →
From page 97... ... Case Studies B-19 • System operational management • Design and construction • Financial management • Federal requirements • Economic impacts Members of the research team conducted in-person interviews in Richmond on February 27, 2020, with representatives of the VDOT divisions listed below (VDOT's organizational chart is available at www.virginiadot.org/about/resources/vdotchartwnames.pdf) Read the entire page →
From page 98... ... B-20 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations 5. VDOT has adopted innovative strategies to improve delivery of capital projects that have also blunted the impact of federal funding uncertainty. Read the entire page →
From page 99... ... Case Studies B-21 B.3.2.1 State Transportation Program Structure At the state level, Virginia's transportation programs are overseen by the Secretary of Transportation. Highway and bridge programs are the responsibility of VDOT, while public transportation and rail are within the Virginia Department of Rail and Public Transportation (DRPT) Read the entire page →
From page 100... ... B-22 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations fuel sales tax with a restored per gallon tax, and includes 5¢ gas tax increases in 2020 and 2021, as well as future increases tied to inflation. Funding also comes from other taxes -- the motor vehicle sales and use tax, motor vehicle license fee, and state sales and use tax. Read the entire page →
From page 101... ... Case Studies B-23 Directorate to provide the long-range planning team with estimates of future resources. Estimated funding in out years is generally considered as an input by the long-range planning staff. Read the entire page →
From page 102... ... B-24 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations The pavement program also contains the snow removal budget -- typically $200 million per year. While the demand is highly uncertain from year to year, major blizzards can substantially consume that budget and require state funds to be transferred away from other maintenance activities. Read the entire page →
From page 103... ... Case Studies B-25 improvements, access management, intelligent transportation systems, transit and rail capacity expansion, and transportation demand management, including park and ride facilities. Projects may also address a documented safety need. Read the entire page →
From page 104... ... B-26 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations Changes in federal requirements related to performance measures were discussed during several of the interviews as a source of uncertainty, since for instance these changes may require project modifications and lead to cost increases. VDOT was already measuring performance for most of the factors required by MAP-21 before it was enacted (and will continue to do so even if federal funding is cut; the performance dashboard is funded with state dollars) Read the entire page →
From page 105... ... Case Studies B-27 addition, VDOT's practice is to make all projects in these programs eligible for federal reimbursement, which allows VDOT to use Advance Construction for all projects regardless of the program. While this gives the department maximum flexibility in how it uses its federal funds, it also means that every contract must include federal requirements and meet federal standards. Read the entire page →
From page 106... ... B-28 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations the rescission to programs that were not, such as the federal Highway Safety Improvement Program. However, these efforts were rendered moot when Congress canceled the rescission earlier that year. Read the entire page →
From page 107... ... Case Studies B-29 adopted by VDOT to mitigate the impacts of federal funding uncertainty are generally sufficient to address short-term delays or minor variations in amounts. However, large cuts in federal funding would have a significant adverse impact on the agency. Read the entire page →
From page 108... ... B-30 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations 4. Uncertainty regarding the long-term adequacy of funding is a more significant concern for WSDOT than near-term uncertainty. Read the entire page →
From page 109... ... Case Studies B-31 designates funds for specific highway, rail, and ferry projects under the capital program. Once the budget is enacted, WSDOT must deliver the specified projects or seek a budget amendment. Read the entire page →
From page 110... ... B-32 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations challenged in court, the governor instructed WSDOT to defer a number of projects, including both highway and other types of projects in case the initiative was upheld and WSDOT's funding reduced. These precautions proved unnecessary, however, as the Washington State Supreme Court found I976 to be unconstitutional, leaving vehicle registration fees at their current levels. Read the entire page →
From page 111... ... Case Studies B-33 system performance. Ultimately, if federal funding ends up varying significantly from what was projected in the long-range plan, it will be up to other parts of WSDOT to address. Read the entire page →
From page 112... ... B-34 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations projects, WSDOT is more strategic about choosing which ones to federalize, due to the increased costs of completing NEPA and other federal contractual requirements. Most large-scale construction projects are fully state-funded. Read the entire page →
From page 113... ... Case Studies B-35 rather than a response to funding uncertainty. This strategy was used recently to protect certain federal funds from rescission, by shifting them to a program that was not subject to the rescission; ultimately, that rescission was canceled by Congress. Read the entire page →
From page 114... ... B-36 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations Financial • Debt. WSDOT uses debt to manage cash flow needs related to the timing of federal funding, as well as for other purposes. Read the entire page →
From page 115... ... Case Studies B-37 WSDOT's project needs. However, they also shifted funds from the NHPP program to the HSIP program in order to protect them from the rescission scheduled at the end of 2020, which Congress ultimately canceled. Read the entire page →
From page 116... ... B-38 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations B.4.5 Conclusion WSDOT has adopted numerous practices to address federal funding uncertainty. While these practices have some cost to the agency, they have allowed WSDOT to mitigate the impact of short delays and minor variations in federal funding on its programs. Read the entire page →
From page 117... ... Case Studies B-39 2. NCTCOG benefits from its close relationships with the DOT and local agencies and governments. Read the entire page →
From page 118... ... B-40 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations partners to plan and recommend transportation projects that will improve mobility and encourage more efficient land use. The Dallas–Fort Worth metroplex is the fourth largest metropolitan region in the United States and is expected to grow from 7.4 million in 2018 to 11.2 million in 2045 (NCTCOG 2018) Read the entire page →
From page 119... ... Case Studies B-41 dollars in funding for highway and transit projects in the Dallas–Fort Worth area. The agency works with federal, state, local, and private partners to ensure transportation projects are fully funded before going to construction. Read the entire page →
From page 120... ... B-42 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations because of the pandemic, and there is some concern over toll road revenues, but overall NCTCOG has yet to feel any major impacts. B.5.3 Impacts of Federal Funding Uncertainty The interviews explored the impacts of federal funding uncertainty on the following functional areas within NCTCOG: • Transportation planning • Asset management • Financial management B.5.3.1 Transportation Planning As a part of its short-range planning activities, NCTCOG develops the Transportation Improvement Program (TIP) Read the entire page →
From page 121... ... Case Studies B-43 B.5.3.2 Asset Management The FAST Act introduced new requirements for MPOs and asset management, requiring NCTCOG and similar organizations to take the condition of assets into account when conducting long-range planning activities. Essentially, MPOs must perform due diligence reviews of the asset management programs developed and implemented by state DOTs and local agencies that own NHS assets. Read the entire page →
From page 122... ... B-44 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations agency noted that long-term federal funding uncertainty makes it difficult to address and plan for a resilient system. B.5.3.3 Financial Management As mentioned earlier, NCTCOG only has direct obligation authority for STBG and CMAQ funds and only advises TxDOT on the obligation of other federal funds. Read the entire page →
From page 123... ... Case Studies B-45 in project delivery. Additionally, this trading of funds can be used in the opposite scenario; if localities have fully funded a project with local funds, but the project is built to federal specifications, NCTCOG will put federal funds to those projects and use the local funds on projects that are not federally applicable. Read the entire page →
From page 124... ... B-46 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations B.5.5 Conclusion The North Central Texas Council of Governments holds a unique position as the MPO for the fastest growing region in the United States within a state that has large amounts of alternative funding sources, including tolls and the Economic Stabilization Fund, which benefits from oil and natural gas tax revenues. The agency has long been aware of federal funding uncertainty and has developed strategies for addressing it. Read the entire page →
From page 125... ... Case Studies B-47 Based on the interviews, the research team identified the following key findings: • Short-term delays in the timing of federal funding do not impact NCPRPDC, because the PennDOT central office insulates them. Cash flow issues related to appropriations delays are handled by PennDOT's central office and not passed along to the region. Read the entire page →
From page 126... ... B-48 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations B.6.2.1 Regional Transportation Program Structure NCPRPDC was created by the Commonwealth of Pennsylvania in response to new requirements in the 1991 ISTEA that state departments of transportation must consult with rural officials in transportation planning. Federal and state funding is allocated to each MPO and RPO in the state by a financial guidance work group made up of representatives from PennDOT, the FHWA, MPOs, and RPOs. Read the entire page →
From page 127... ... Case Studies B-49 Through a program called PennDOT Connects, transportation issues are brought to the attention of NCPRPDC and PennDOT districts by county or municipal leaders.5 The goal of PennDOT Connects is for early coordination on planning to yield projects more suited to community needs, and to reduce inefficiencies, e.g., by coordinating roadwork with utility work. NCPRPDC staff noted that the range of issues raised through this process provides an important picture of the transportation needs of communities that may not otherwise be considered, such as the need for bike trail connections in a certain area. Read the entire page →
From page 128... ... B-50 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations B.6.3 Impacts of Federal Funding Uncertainty The following section summarizes the impacts of federal funding uncertainty on the following functional areas: • Transportation planning • Project delivery • System operational management • Financial management • Federal requirements • Economic impacts As noted, NCPRPDC is directly responsible for short- and long-range transportation planning. The PennDOT districts are responsible for project delivery, system operational management, and financial management; those areas are discussed below in order to provide a full picture of the impact of federal funding uncertainty on the North Central region. Read the entire page →
From page 129... ... Case Studies B-51 against larger, more urban areas due to limited staff capacity and difficulty raising local match. Because these programs are authorized by Congress, there is ongoing uncertainty about whether those programs will continue, what their funding levels will be, and what the eligibility requirements will look like. Read the entire page →
From page 130... ... B-52 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations B.6.3.4 Financial Management Fund allocation decisions are made by the central office, with the distribution the region receives between federal and state funding fluctuating from year to year. Short-term delays in federal funding, such as when appropriations bills are delayed by a few weeks or months, are handled by the central office; the region is not typically impacted. Read the entire page →
From page 131... ... Case Studies B-53 In addition to performance requirements, other types of federal requirements also have an impact. For example, the 2009 Recovery Act's requirement that projects be "shovel ready" led the North Central region to spend most of its Recovery Act funds on resurfacing roads, rather than addressing deeper issues that were higher priority but not ready to go in the short-term. Read the entire page →
From page 132... ... B-54 Federal Funding Uncertainty in State, Local, and Regional Departments of Transportation: Impacts, Responses, and Adaptations benefits and downsides. While NCPRPDC and the districts have used these strategies to manage federal funding uncertainty, their use has not been without risk or cost, as described in greater detail below. Read the entire page →
From page 133... ... Case Studies B-55 structurally deficient bridges across the state, including several dozen in the North Central region, reducing the need for North Central to program as much bridge repair funding. Programmatic • Deferring projects. Read the entire page →

From page 79...

... B-1 Case Studies B.1 Missouri DOT Case Study B.1.1 Introduction This case study report includes background on the organization and management of transportation systems in the state of Missouri, impacts of federal funding uncertainty on functional areas of MoDOT, strategies Missouri applies to mitigate the impacts, and key findings of this case study. Missouri was selected as one of the six case studies because it is a moderately populated state, has moderate levels of federal funding but low state funding support for transportation relative to other case study states, and has a moderate number of public roads per capita.