Highway Program Financing

July 2011

Michigan Allocations

Federal Law + State Law + Michigan Policy = MDOT & Local Allocations of Federal Apportionment and Allocations

Federal Perspective

The Federal Highway Program Focuses on

Federal Functional Classification

…NOT jurisdiction

Urbanized/Non-urbanized Areas...NOT cities,

villages, and counties

Michigan LawMichigan Allocations

Local MDOTEquity Bonus

TEDF-C TEDF-D

TEDF Set Aside

Excluding CMAQ, Enhancements, Earmarks, and Bridge

31.5% of EB to TEDF

15% to Cat. C

16.5% to Cat. D

Rail Crossing Mandate

30%<MDOT<50%

Rail Crossing Funds

Allocation Process

Assigning Federal Highway Program Apportionments and Allocations to MDOT and Local Programs

Transportation Management Area Program

FY 2011 - $88.3 million

Equals Federal Suballocation to Areas Over 200K (policy decision)

Suballocated proportionately to MPOs based on population

Local Roads in MPOs of Urbanized Areas Over 200,000

Transportation Econ. Dev. Fund-Category C

FY 2011 - $9.2 Million

Equity Bonus (Minimum Guarantee) set aside required by state law

Suballocated to counties by fixed statutory percentage

Congestion Relief on Roads in the 5 Urban Counties

Transportation Econ. Dev. Fund-Category D

FY 2011 - $10.1Million

Equity Bonus (Minimum Guarantee) set aside required by state law

Suballocated to counties by share of rural county primary mileage

System of All-season Roads in the 78 Rural Counties

Metropolitan Planning

FY 2011 - $10.8 Million

Equals Federal Apportionment (Federal Law)

Suballocated to MPOs by base and population

MPO Process for Urbanized Areas

“Fixed” Allocations

TMA Program $88.3

TEDF-C $9.2

TEDF-D $10.1

Metro Planning $10.8

=================

Subtotal $118.4

25% Target $189.1

-Subtotal $118.4

=================

Remaining $70.7

$70.7 million distributed proportionately to remaining programs

Compared to 25 Percent Target

Small Metropolitan Planning Organization Program

FY 2011 - $21.2 Million

Proportional share of $70.7 million (policy decision)

Suballocated proportionately to MPOs based on population

Local Roads in MPOs of UZAs from 50,000 to 200,000

Small Urban Program

FY 2011 - $9.2 Million

Proportional share of $70.7million (policy decision)

Granted to Urban Areas by application

Local Roads in Urban Areas 5,000 to 50,000

Rural STP Program

FY 2011 - $28.0 Million

Proportional share of $70.7 million (policy decision)

Suballocated to counties by FAS formula (area, miles, population)

County Roads Outside Large UZAs

Safety Programs

FY 2011 - $26.6 Million

Proportional share of $70.7 million (policy decision)

Granted to Local Agencies by application

Local Road Safety, Rail Crossings, and Safe Routes to School

“Non-75/25” Programs

Congestion Mitigation & Air Quality

• Total FY 2011 - $78.4 Million

• Allocation determined by project selection process

Transportation Enhancements

• Total FY 2011- $28.6 Million

• Allocation determined by project selection

MDOT and Local Allocations

“Non-75/25” Programs

Bridge Funds

• Total FY 2011 -$134.0 Million

• 15% or $20.1 to Local Bridge Program

Earmarks

• Allocation determined by Congress. No Earmarks in FY 2011

Discretionary Funds

• 2011 is the first year in a long time that we had a full discretionary program

MDOT and Local Allocations

Obligation Authority

Associate apportionments with corresponding obligation authority

Exclude “Non-75/25” Set aside amount of ceilings

associated with “Fixed” Allocations Distribute the remaining ceiling Determine apportionments for other

programs based on authority amount

Allocations by Obligation Authority, NOT Apportionments

75/25 Obligation Authority

Local MDOT

Local Projects

When a project is submitted by one of the hundreds of local agencies we ask:• Is the project in the S/TIP?

• Does the agency have apportionment?

• Is there local obligation authority?

If all answers are “Yes” we request obligation of funds

Local Program Rules

Individual counties and MPOs may submit projects using their entire allocation balance if the projects are in the S/STIP

Obligation Authority amounts are available on a “First-come, First serve” basis

Local apportionments/allocations and obligation authority amounts are carried forward from one fiscal year to the next

Important Reminder

Differences in estimated and actual costs and changes that occur throughout the financial life of a project increase or decrease balances of apportionment / allocations and obligation authority.

MDOT Program

MDOT 5 Year Road and Bridge Program• Also STIP and TIP’s

Uses the MDOT Funding “Template”• Repair and Rebuild

• Bridge

• New Roads

• Maintenance

• Etc.

MDOT Projects

When a project is submitted by a System Manager we ask:• Is the project in the S/TIP?

• Is it Federal-aid eligible?

• Do we have eligible apportionment?

• Is there MDOT obligation authority?

Depending on the answers, we can obligate federal funds, request “AC authorization, or use State funds