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INTRODUCTION TO FEDERAL HIGHWAY FUNDING AND ELIGIBILITY Steve Baumann Financial Specialist

Mike Morrow (Field Operations Engineer) 503-5874708. INTRODUCTION TO FEDERAL HIGHWAY FUNDING AND ELIGIBILITY Steve Baumann Financial Specialist (503) 587-4729. EXPECTATIONS. Characteristics of the FAHP Legislation Responsibilities Major funding requirements

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INTRODUCTION TO FEDERAL HIGHWAY FUNDING AND ELIGIBILITY Steve Baumann Financial Specialist

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  1. Mike Morrow (Field Operations Engineer) 503-5874708 INTRODUCTION TO FEDERAL HIGHWAY FUNDING AND ELIGIBILITY Steve Baumann Financial Specialist (503) 587-4729

  2. EXPECTATIONS • Characteristics of the FAHP • Legislation • Responsibilities • Major funding requirements • Discretionary – Earmarked funds

  3. 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

  4. State DOT Apportionment or Allocation Federal, State and Local RelationshipFederal Responsibilities • Review and approve state/local proposals • Develop regulations and guidance • Promulgate standards • Provide technical assistance • Distribute line of credit • Reimburse States their eligible expenses

  5. Federal, State and Local Relationship State and Local Responsibilities • Conceive, prioritize, plan, design, and construct projects • Maintain and operate highways

  6. 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

  7. Highway Trust FundSAFETEA-LU of 2005 • Extended authorization for FY2005-2009 • Extended HTF through FY 2011 • Congress added eight billion with hopes of getting through 2009

  8. Obligations • 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

  9. Obligation Limitation (Obligation Ceiling) What is it? • A budgetary mechanism to control Federal spending Who does it? • Congress -- through legislation Why? • To be responsive to current budget policies

  10. Obligation Limitation Characteristics State-by-State Limit Oct 2000 1 Sept 2001 Applies Total to Program 30 Good for 1 Year

  11. Reimbursement Contractor does work LPA pays Contractor A c t i o n s State pays contractor State pays LPA State submits State submits voucher to FHWA voucher to FHWA FHWA sends FHWA sends to Treasury to Treasury Treasurer wires Treasurer wires money to State money to State Time

  12. Functional Classification Eligibility for Federal Financial Assistance Interstate - 1% (Included in NHS %) NHS - 4% Local - 76% Other - 20% Ineligible Eligible Out of 3.9 million miles of roads in the U.S., less than 1 million miles are eligible for federal financial assistance.

  13. 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

  14. 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

  15. Discretionary • Division office authorization • Apply (subsequent FHWA approval)

  16. 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

  17. 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!

  18. LPA Advertising for Bids “THOU SHALT HAVE AN FHWA AUTHORIZATION IN THY HANDS PRIOR TO ADVERTISING FOR BIDS” (or spending any money)

  19. Local Responsibilities and Expectations for LPA projects • Knowledge of Federal-aid requirements • ODOT/Local Partnership: early, continuous communication and coordination needed. • ODOT/LPA knowledge of what is happening on LPA projects (funding, work progress, inspections, etc)

  20. Local Responsibilities and Expectations for LPA projects • ODOT provides oversight of Local Agencies and is not relieved of its responsibilities for LPA projects’ compliance with Federal regulations • 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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