US Department of Transportation

FHWA PlanWorks: Better Planning, Better Projects

US Department of Transportation

FHWA Planworks: Better Planning, Better Projects

LRP-5: Approve Financial Assumptions

Long Range Transportation Planning

Description:

At this Key Decision information from the Programming / Fiscal Constraint Phase is introduced into the LRTP decision making process. This information includes potential revenue sources, a methodology for identifying costs of individual projects, and acknowledgement of restrictions and requirements associated with each funding source. In order for the adopted LRTP to meet the fiscal constraint requirement, this information must be approved by the decision makers as the basis for the LRTP development.

There is information developed in prior Key Decisions that informs this step. There is essential information provided from PRO-1 and PRO-2 at this Key Decision.

Basics:

The first table describes the purpose and anticipated outcome of a Key Decision. If the decision is federally mandated, the purpose and outcome will relate to the legal intent.

The second table describes roles for key partners with legal decision making authority in the transportation process. The roles indicate the influence a partner can have on a decision, and show each partner where their input is most needed. For a full understanding of roles see the Partner Portal.

Purpose

To reach agreement on potential revenue source, the restrictions and requirements for allocating revenue and the methodology for identifying costs so that scenarios can be fully considered.

Outcome

Approved project cost methodology and revenue sources for evaluation and comparison of scenarios.

Partner	Role Type	Description
MPO	Decision Maker	Approves revenue sources and project costs that are reasonable and reflect fiscal constraint.
FHWA/FTA	Advisor	Ensures the fiscal constraint requirement is met and funding is used appropriately.
State DOT	Advisor	Ensures assumptions of anticipated revenue is consistent with state perspective.
Resource Agency	Advisor	Advise that data on funding and long-term management options and cost data associated with ecosystem crediting is considered. Advise if conservation and mitigation spending is planned for in the LRTP and STIP.
Public Transportation Operator(s)	Advisor	Ensures assumptions of anticipated revenue is consistent with transit perspective.

Links to Decisions

This table identifies the connection to other Key Decisions. The linkages highlight the importance of collaboration across transportation phases. Practitioners are encouraged to document the basis of the decision and consider information from previous Key Decisions.

Transportation Phases	Key Decision	What is Linked?	Purpose of Linkage
From Programming	PRO-1 - Approve Revenue Sources	Identified revenue sources with requirements and restrictions	To support fiscal constraint assumptions for the LRTP
From Programming	PRO-2 - Approve Project Cost and Revenue Allocation Approach	Methodology for developing project costs and revenue allocation	To support fiscal constraint assumptions<br/>To provide financial assumptions for consideration in scenario analysis
To Corridor Planning	COR-5 - Approve Evaluation Criteria, Methods and Measures	Financial assumptions	To inform the evaluation criteria, methods and measures in corridor planning.

Questions to Consider

Questions are a way to gather input from partners and stakeholders that can be used to inform the decision. Decision makers can discuss the questions provided to ensure a broad array of interests are considered to support a collaborative process. Questions also allow staff to collect stakeholder interests, ensure these are included in the decision, and provide a response based on the decision outcome. Although Public Transportation is not represented by a PlanWorks Application, the information provided may be useful in a collaborative transportation process.

Category	Questions to Consider
Long Range Planning	What is the estimated funding over the life of the plan? Are the identified revenue sources; funding restrictions and requirements; and project cost methodology presented so that stakeholders can clearly understand this information?
Programming	What is the current funding in the TIP and the anticipated future funding from existing sources? Do any of the funding sources require action outside of the transportation decision-making process? Have all reasonably foreseeable funding sources and associated requirements and restrictions been identified? What data are available from past fiscal analyses regarding availability of funding and revenues and how have these changed since the last plan? Are there alternative revenue and finance sources (e.g. tolls or user fees)? Are there grants or funds available from other public agencies like HUD, EPA, etc.?
Corridor Planning	Do the approved financial assumptions impact any active corridor planning studies?
Environmental Review	What information is available on project costs from previous projects?
Bicycles and Pedestrians	Have funding sources for bicycle and pedestrian improvements been identified; in addition to sources such as the Transportation Alternatives Program(see http://www.fhwa.dot.gov/environment/bicycle_pedestrian/guidance/misconceptions.cfm)? How are the costs associated with bicycle and pedestrian improvements estimated, including those that are part of larger projects?
Capital Improvement	Have financial resources been identified for specific Capital Improvements that relate to anticipated transportation improvements? Are financial assumptions consistent with those used in the relevant Capital Improvement plans?
Economic Development	Do the assumptions take into consideration potential mitigation of adverse economic impacts and any additional economic costs? Have economic development partners and stakeholders identified any non-traditional revenue sources that should be included?
Freight	Have freight stakeholders identified potential additional funding options?
Greenhouse Gas Emissions	Are the proposed GHG-reduction strategies expected to generate new sources of revenue to support plan improvements? If so, how will these revenues be shared between partner agencies? Are there funding programs that target GHG-reduction strategies? What would be the impact of GHG-reduction strategies that involve financial incentives (e.g., for use of alternative fueled vehicles, higher density development supporting smart growth)?
Health in Transportation	Are there grants or shared planning funds available to support collaboration between transportation and health practitioners? What resources or support – revenue sharing, in-kind assistance, or other financing mechanisms – are available to support investments in community health? What methods will be used to identify funding mechanisms and project costs eligible for revenue sharing, in-kind assistance, and other ways to finance health-related improvements? Are health partners able to sponsor or implement strategies that would improve health outcomes?
Human Environment and Communities	This Key Decision is not associated with the Application.
Land Use	This Key Decision is not associated with the Application.
Linking Planning and Operations	Have funding sources and funding needs been identified for operational improvements to address operational goals? How are the costs associated with operations and maintenance estimated?
Natural Environment and Implementing Eco Logical	Do the assumptions take into consideration the cost of ecological conservation, restoration, and mitigation? Is there information associated with an ecological crediting strategy that can inform the cost of mitigation? Is there information from other similar projects in the region or elsewhere that can inform the cost of mitigation?
Performance Measures	This Key Decision is not associated with the Application.
Planning and Environment Linkages	This Key Decision is not associated with the Application.
Public Private Partnerships	Does the consideration of specific funding resources require additional sharing of decision making that is not currently in place? For example, with a private partner? Which transportation projects/deficiencies could attract private sector investments? Are formal agreements (for example MOA/MOU, contracts, or local agreements) necessary to ensure funding availability? What eligibility criteria and restrictions should be considered for private sector stakeholders to invest in specific projects?
Public Transportation	Have funding sources for public transportation improvements been identified? Have the costs associated with public transportation improvements been estimated, including those that are part of larger projects?
Safety	Has funding for safety improvements been included in the assumptions? Are there any non-traditional sources to support safety improvements? Have the safety partners indicated an interest in shared funding for specific deficiencies?
Stakeholder Collaboration	This Key Decision is not associated with the Application.
Transportation Conformity	This Key Decision is not associated with the Application.
Visioning and Transportation	Are the potential revenue sources identified during visioning broad enough to allow consideration of transportation and non-transportation solutions to address the transportation vision and goals?

Data

The following list of data may be needed to support the Key Decision. Practitioners collect this information for decision makers to consider. Although Public Transportation is not represented by a PlanWorks Application, the information provided may be useful in a collaborative transportation process.

Category	Data to Consider
Long Range Planning	Data on previous plan funding
Programming	Analysis associated with potential revenue from outside sources including taxes and partnerships Funding trend analysis Information about potential funding sources and eligibility criteria or partners which may provide funding Budget and revenue information within jurisdictions Data from research on similar regions to inform methodology approaches Inflation adjustments to consider Methods used for cost estimation at the state level and from previous studies Operating and maintenance cost for system (other than public transportation) Outside agreements that impact resource availability Potential partners that may support/provide funding Estimates of revenues expected from proposed strategies or projects (e.g. revenues from toll roads)
Corridor Planning	Approved financial assumptions to inform active corridor studies, as applicable
Environmental Review	Project cost data for comparisons
Bicycles and Pedestrians	Bicycle and Pedestrian Funding Opportunities: U.S. Department of Transportation, Federal Transit, and Federal Highway Funds Bicycle and Pedestrian Funding, Design, and Environmental Review: Addressing Common Misconceptions Costs for Pedestrian and Bicyclist Infrastructure Improvements: Pedestrian and Bicycle Information Center Pedestrian and Bicycle Safety Guide Countermeasure Selection System (http://www.pedbikesafe.org/) Funding and financing options and cost data that have been identified for bicycle and pedestrian projects and maintenance, including those that are a portion of a larger project Cost savings for incorporating on-road bike infrastructure during routine resurfacing as compared to stand alone projects
Capital Improvement	Infrastructure plans and financial resources that have been identified for specific Capital Improvements Restrictions and requirements established in the Capital Improvement plan Financial assumptions used in Capital Improvement plans
Economic Development	Funding and financing options that have been identified for projects that offer economic development benefits Non-traditional revenue sources, as identified
Freight	Funding and financing options supported by freight stakeholders
Greenhouse Gas Emissions	Funding programs that target GHG-reduction
Health in Transportation	Information on potential financial and in-kind resources available
Human Environment and Communities	This Key Decision is not associated with the Application.
Land Use	This Key Decision is not associated with the Application.
Linking Planning and Operations	Lifecycle operations and maintenance costs
Natural Environment and Implementing Eco Logical	Data generated through the ecological planning process around how conservation and restoration actions can be funded in advance of transportation projects, and for long-term management. Data from crediting strategies (if available) to inform costs associated with mitigation credits.
Performance Measures	This Key Decision is not associated with the Application.
Planning and Environment Linkages	This Key Decision is not associated with the Application.
Public Private Partnerships	Assessment of the potential for innovative financing mechanisms Eligibility criteria for private sector partners who may provide funding Advice from trusted P3 advisor Availability of funding, the ability of current sources of revenue to meet future transportation needs, and the potential advantages of using a P3
Public Transportation	Operating and capital costs for public transportation and other demand-management strategies
Safety	Safety revenue sources and associated requirements
Stakeholder Collaboration	This Key Decision is not associated with the Application
Transportation Conformity	This Key Decision is not associated with the Application.
Visioning and Transportation	Revenue assumptions or considerations associated with any visioning activities

Links to Applications

The interaction between transportation decision making and other planning processes will ensure that important values and goals outside the transportation process are recognized and considered. Although Public Transportation is not represented by a PlanWorks Application, the information provided may be useful in a collaborative transportation process.

Application	Description
Bicycles and Pedestrians	Identify federal, state, local, or private revenue sources that could be available to support bicycle and pedestrian improvements and estimate the costs of those improvements.
Capital Improvement	Shared funding resources and in-kind contributions may advance improvements that are needed in the short term. This Key Decision is a set up for decisions made in programming by identifying potential opportunities for additional revenue sources. Considering Land Use changes, Economic Development resources, and other anticipated improvements related to the Human Environment and Communities allows plan scenarios to consider costs more broadly and across sectors.
Economic Development	Given the role that transportation plays in economic development, additional resources may be available to supplement more traditional transportation funding sources. Stakeholder Collaboration and engaging partners can help identify other revenue sources. Also consider Public-Private Partnerships and other innovative financing options.
Freight	Review options available under the Public-Private Partnerships Application, and look for opportunities to combine or share funding sources, such as Safety or Economic Development.
Greenhouse Gas Emissions	Reach an agreement on how revenue from both transportation and other sources may be considered to support GHG-reduction goals.
Health in Transportation	Other Applications might also offer avenues for funding improvements that will benefit health, including the Capital Improvement, Land Use, and Safety Applications.
Human Environment and Communities	This Key Decision is not associated with the Application.
Land Use	This Key Decision is not associated with the Application.
Linking Planning and Operations	Operation improvements rely on support from many other funding sources. Safety funding may be considered to support operations improvements as well as funding associated with Transportation Conformity options.
Natural Environment and Implementing Eco Logical	Explore funding and long-term management options, how conservation and restoration actions can be funded in advance of transportation projects, and for long-term management to help inform financial assumptions.
Performance Measures	This Key Decision is not associated with the Application.
Planning and Environment Linkages	This Key Decision is not associated with the Application.
Public Private Partnerships	Financial assumptions within the LRTP cover the full 20-year horizon period. Therefore, if P3 is not supported at this time, it can be investigated for projects in the out years. It is important to document information, assumptions, and potential partnerships. This is similar to the Planning and Environment Linkages Application where documentation is an ongoing requirement.
Public Transportation	Identify federal, state, local, or private revenue sources that could be available to support public transportation improvements and estimate the costs of those improvements.
Safety	Including safety funding sources and shared funding opportunities may be important to show progress toward performance targets, particularly the National Goals and measures related to safety. See the Performance Measures Application for potential implications. Safety funding may support needed Bicycle and Pedestrian infrastructure such as crosswalks and widened shoulders. Freight stakeholders and safety partners may have common interests that support shared funding.
Stakeholder Collaboration	This Key Decision is not associated with the Application.
Transportation Conformity	This Key Decision is not associated with the Application.
Visioning and Transportation	If revenue sources identified in visioning relate to transportation system improvements, there may be potential partnerships or support for the transportation investments identified in the LRTP. Consider specifically any Public-Private Partnerships and Freight interests and commitments

Examples

In - depth case studies of successful practices in collaborative decision making were used to develop the Decision Guide.Links in this table point to a specific paragraph or section of a case study that supports a Key Decision. It is not necessary to read through an entire case study to find the example; however, full versions are available in the Library.

PlanWorks Case Study Examples:
I-5 Beltline Interchange Plan - Using Community Values as Performance Measures lrp-5

Other Examples:
Fort Collins Bicycle Network (Fort Collins, Colorado) http://www.fhwa.dot.gov/environment/bicycle_pedestrian/publications/network_report/page04.cfm
Hawaii Statewide Pedestrian Plan Section 6.2 Funding Strategies http://hidot.hawaii.gov/highways/statewide-pedestrian-master-plan-and-hawaii-pedestrian-toolbox/