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.

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
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(http://www.pedbikeinfo.org/ )
    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

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/