US Department of Transportation

FHWA PlanWorks: Better Planning, Better Projects

US Department of Transportation

FHWA Planworks: Better Planning, Better Projects

PRO-1: Approve Revenue Sources

Programming

Description:

This Key Decision establishes the revenue basis for both the fiscal constraint of the long range plan as well as the funding sources for the TIP. Using the same revenue projections for the long range plan and the TIP ensures financial consistency between the plan and program. Funding may require legislative approvals: for example, bonding or tolling authority.

There is information developed in Long Range Planning Key Decisions that informs this step. In order to effectively execute this Key Decision there is essential information created at LRP-1 related to potential funding partners and resources that can inform this 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 identify reasonably foreseeable revenue resources to support project programming.
To identify specific funding restrictions and requirements and establish MOU/MOA between funding partners were appropriate.

Outcome

A document that summarizes available revenue that can be used to fund individual projects. This document can be made available to the public, stakeholders, and partners.

Partner	Role Type	Description
MPO	Decision Maker	Approves revenue sources that are reasonable and equitable.
FHWA/FTA	Advisor	Ensures revenue sources identified are reasonable and appropriate.
State DOT	Advisor	Provides support for appropriate inclusion of state and federal revenue sources.
Resource Agency	Observer	Observe the identification of revenue sources.
Public Transportation Operator(s)	Advisor	Provides support for appropriate inclusion of transit revenue sources.

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
To Long Range Transportation Planning	LRP-1 - Approve Scope of LRTP Process	Potential partnerships and revenue sources	To consider the potential partnerships and potential revenue sources identified during scoping of the LRTP.
From Corridor Planning	COR-1 - Approve Scope of Corridor Planning Process	Potential partnerships and revenue sources	To consider the potential partnerships and potential revenue sources identified during scoping of the corridor plan

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	Were potential revenue sources identified during scoping and development of the long-range plan?
Programming	Are formal agreements (for example MOA/MOU, contracts, loan agreements, etc.) necessary to ensure funding availability? Does any agreement specify the funding conditions for all partners? Do any of the funding resources require action outside of the transportation decision making process? Have all reasonably foreseeable funding sources and associated requirements and restrictions been identified? How might potential revenues be affected by other conditions? For example, caps on tolls charged by the private sector, unexpected changes in traffic volumes, or availability of future government funding. Is the funding available from non-transportation sources committed and available for the first four years of the program? What would be the estimated revenue from these sources after the first four years?
Corridor Planning	Did any corridor planning studies identify any potential funding partnerships or revenue sources?
Environmental Review	No specific questions
Bicycles and Pedestrians	Are there public or private sources to support bicycle and pedestrian network improvements?
Capital Improvement	This Key Decision is not associated with the Application.
Economic Development	Have all potential funding sources for non-transportation infrastructure and economic investment been identified?
Freight	Have freight stakeholders identified any potential funding sources? Do any existing freight plans identify available freight funding that can be considered in the TIP/STIP?
Greenhouse Gas Emissions	Are there additional revenue sources available to support projects that reduce GHG emissions? Are any of the projects that reduce GHG emissions expected to generate new sources of revenue (e.g., congestion pricing or parking pricing projects)?
Health in Transportation	What are the potential partnerships or potential revenue sources available for investments supporting public health? Were any identified during long range planning?
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	Are any operational projects expected to generate new revenue (for example, sponsorship, advertising, and/or HOV-lane revenues)? Do existing revenue sources or those being considered address long-term management and operations? Have funding sources and funding needs been identified for TSMO improvements?
Natural Environment and Implementing Eco Logical	Have potential funding sources, especially for advance mitigation, been identified as part of ecological planning?
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	Is there a state or regional agency/department that assists with P3 projects to assist in developing revenue projections? Does the consideration of specific funding resources require additional shared decision making (e.g., with a private partner)? Is there a project in the current program for which private sector funding is considered? Has a Pre-Development Agreement (PDA) or Master Development Agreement (MDA) been established with any private sector partners? Are P3 projects expected to generate new sources of revenue or financing (e.g., toll roads and high occupancy toll lanes)? What would be the estimated financing or revenue available from P3 projects during the TIP period? How will the revenue be allocated? What are the risks of entering into P3 arrangements for these projects, and how do we protect the public interest? What lessons have we learned from prior experiences with P3 in the region or in other regions?
Public Transportation	Are there applicable public transportation funding sources to consider?
Safety	Are safety funding sources appropriate for any identified projects?
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 transportation system improvements identified within the adopted vision? What revenue projections are included in support of the vision? Is there any relationship to transportation funding sources? Is there a potential for immediate funding partnerships from the adopted future?

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	Potential funding partners and resources identified in long-range planning
Programming	Funding available within the current TIP/STIP Analysis associated with potential revenue from outside sources including taxes and partnerships Information about cost and revenue sharing agreements between project partners Local, state, and federal funding available for consideration Potential public or private revenue sources to consider Restrictions or requirements related to each funding source
Corridor Planning	Potential funding partners or resources identified during corridor planning
Environmental Review	No specific data
Bicycles and Pedestrians	Bicycle and pedestrian funding sources
Capital Improvement	This Key Decision is not associated with the Application.
Economic Development	Non-traditional infrastructure funding sources that are expected in the TIP period
Freight	Potential freight funding source information Freight plans
Greenhouse Gas Emissions	Budget and revenue information within jurisdictions (local, county, state) which support reducing GHG
Health in Transportation	Potential partners and/or revenue sources for funding investments that support health
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	Information on existing or potential revenue sources that may support TSMO improvements
Natural Environment and Implementing Eco Logical	Funding options identified through ecological planning for advance mitigation and long-term management of conservation/restoration/mitigation projects
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	Advice on P3 revenue potential P3 options with implications for risk and revenue generation Existing agreements relating to P3s Lessons learned from other P3 experiences
Public Transportation	Public transportation funding programs
Safety	Safety funding programs
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 information from the visioning process Potential funding partners from visioning

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	Consider all potential funding sources for bicycle and pedestrian improvements.
Capital Improvement	This Key Decision is not associated with the Application.
Economic Development	Explore the broad range of potential revenue sources available for transportation investments, particularly for economic development sources. Also consider Public-Private Partnerships and other innovative financing options.
Freight	In addition to surveying freight stakeholders, review options available under the Public-Private Partnerships Application, and look for opportunities to share funding related to other community interests, such as Safety, Economic Development, and/or Capital Improvement.
Greenhouse Gas Emissions	Identify revenue sources available to support projects to reduce GHG emissions.
Health in Transportation	Health-related funding and partners might also be available through other Applications, such as Bicycles and Pedestrians, Linking Planning and Operations, Safety, and Visioning and Transportation.
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	Compile a list of potential revenue sources, which may include Public-Private Partnerships. Consider the relationship of TSMO projects to Safety for potential shared funding or local contributions from Safety partners.
Natural Environment and Implementing Eco Logical	Collect data to inform funding and long-term management options. Consider how advance mitigation and other conservation/restoration actions can be funded.
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	For consideration of external revenue sources, Freight and Economic Development are the most relevant Applications.
Public Transportation	Consider whether or not FTA funding programs or public transportation operator funding will support public transportation-related improvements.
Safety	Identify safety funding programs that can be applied to specific projects. Consider the Linking Planning and Operations Application to identify where local funding and relationships with other community processes (first responders) may provide matching or in-kind funding options.
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	Unless the adopted future is well established and moving forward with broad support, TIP/STIP funding is unlikely. For federal approval of this funding, commitments will be required for the short-term. Consider Public-Private Partnerships that are active or Freight stakeholder support as potential overlaps at this Key Decision.

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:
None.

Other Examples:
None.