Transportation Operations in Transportation Operations in Action: Financing OperationsAction: Financing Operations

Institute of Transportation Engineers 2009 Technical Conference and Exhibit

Dr. Margaret M. Cusack, PMP

Congestion: Solution = ITSCongestion: Solution = ITS

Incident detection & rapid clearance HELP Programs Advanced Traveler Information Systems (ATIS) Automated Traffic Management Systems (ATMS) Congestion management/congestion pricing Managed lanes/HOV/HOT

– Limited access, eligibility requirements, etc. ORT Forecast models

The real reason for ITS: The real reason for ITS: CRASH PREVENTIONCRASH PREVENTION

6,420,000 auto accidents in the United States in 2005.

The financial cost of these crashes is more than 230 Billion dollars.

2.9 million people were injured and 42,636 people killed.

About 115 people die every day in vehicle crashes in the United States -- one death every 13 minutes.

Context: What makes ITS Context: What makes ITS hard to plan for and fund?hard to plan for and fund?

For transportation agencies it is a foreign concept that there is a type of project that does not end.

Transportation and infrastructure financing is typically rigid and habitual.

Software development expertise, and communications design – both required elements of ITS systems – are typically not found in a department of transportation.

SCALESCALE

Federal ITS ProgramsStatewide/Regional ITS ProgramsLocal ITS Programs

– New York– Los Angeles– Salt Lake City– Atlanta– Etc………….

American Recovery and American Recovery and Reinvestment Act (ARRA) Reinvestment Act (ARRA)

“Stimulus Package”“Stimulus Package”

$787 billion in federal funding for initiatives to help stimulate America’s economy.

$48.76 billion in transportation.

– Highways $27.5 (3% to Enhancements)– Public Transportation $8.4– Nationwide Grant Program $1.5– Aviation $1.3– Rail $9.3

• Source: VDRPT

Tuesday, March 3, 2009Tuesday, March 3, 2009

President Barack Obama, joined by Vice President Joe Biden and U.S. Transportation Secretary Ray LaHood, (at the USDOT in Washington) today marked the release of $26.6 billion from the American Recovery and Reinvestment Act (ARRA) to states and local transportation authorities to repair and build highways, roads and bridges.

TIGER TeamTIGER Team

At the ceremony the President unveiled new logos for government-wide projects completed under the ARRA and the Transportation Investments Generating Economic Recovery (TIGER) logo for transportation projects completed under the ARRA.

TIGER TeamTIGER Team

According to Calvin Scovel, USDOT Inspector General, the TIGER Team is dealing with a large infusion of money, which must be distributed quickly and using only existing staff resources.

This will force the department (USDOT) to limit its focus on its mission of transportation safety.

• http://www.transportgooru.com

Transportation funds:Transportation funds:Not just for USDOT…..Not just for USDOT…..

142M to Coast Guard for alteration or removal of obstructive bridges

150M to FEMA for Public Transportation (rail) Security; and 150M for Port Security

180M to Bureau of Land Management for roads, bridges, trails, etc…

165M to US Fish & Wildlife for construction and repair of roads, bridges, etc….

589M to National Park Service for critical infrastructure projects ……

USGS, BIA, Dept. of Agriculture…..

A good question:A good question:(found on www.recovery.gov)(found on www.recovery.gov)

Q: I heard I'd be able to track recovery funds. Why can't I do that?A: You aren't able to track funds yet because we have not yet started receiving information from Federal agencies on how they are going to allocate the money. It takes a little bit of time for them to make sure your money is going to be spent wisely. …. You will have access to data as soon as we begin receiving it from agencies.

USDOTUSDOT

$1.5B through September 30, 2011– 20 to 300M grants– Significant impact on the Nation; a

metropolitan area; or a region$27.5B through September 30, 2010

– Projects funded at 50%– Projects that have to be completed in 3 years– Isn’t that past the 2010 deadline????

Other OpportunitiesOther Opportunities

Amtrak – 1,300MFTA – 6,900MFCC – no amount stated

– Broadband Technology Opportunities Program– (4) improve access to and use of broadband

service by public safety agencies– 80% or higher available match

What happened to Title 23?What happened to Title 23?

ISTEA – 1993 to 1997TEA-21 – 1999 to 2003SAFET-LU – 2003 to 2009…….CAA - 1990CAAA - 1991

FY 2009FY 2009

IM $4,700 M NHS $5,500 M Bridge $4,000 M STP $5,807 M CMAQ $1,600 M Safety $1,500 M ITS Performance Incentive?? $135 M

http://www.fhwa.dot.gov/reauthorization/authorizations.htm

SAFET-LU 2003 to 2009SAFET-LU 2003 to 2009

Apportionment Category Total for 6 years

IM 25,379,640,000

NHS 30,124,368,000

STP 31,484,699,740

Bridges 21,767,922,000

CMAQ 8,607,299,917

Safety 7,321,050,000

TOTAL (Above categories only) 105,093,849,857

17,515,641,642 per year

Title 23 FundingTitle 23 Funding

If it will be re-authorized, at what levels?Does the stimulus package diminish the

perception of a need for funding?The ARRA does not authorize spending in

many important areasThe ARRA does not even mention ITS

ARRA model vs. ISTEA modelARRA model vs. ISTEA model

ARRA = Federal agency staff determines allocation– By program?– By project?

Surface Transportation Legislation = State Governments determine programming policies for funding, following established programming processes

Onward and Upward Onward and Upward

We have elevated the traveler’s expectations to the point where ceasing the operations activities we now have developed would be unheard of.

Only embellishment and improvement to ITS programs will be accepted.

State GovernmentsState Governments 47 states are facing shortfalls

in their budgets New gaps of $53B have

opened up (on top of $48B) in the budgets of 42 states plus D.C. 

44 states anticipate deficits for fiscal year 2010 and beyond. 

Total gap of $105 billion — 17 percent of budgets in 38 states that estimated these gaps

Source: http://www.cbpp.org

City GovernmentsCity Governments

New York: Estimates a budget gap of $1.2 billion in 2010. Budget gap projection for 2011 is now $4.8 billion.

San Diego: The total budget for Fiscal Year 2009 is $3.13 billion (no gap reported).

Horse goes before the cartHorse goes before the cart

Have a defensible plan for building the ITS infrastructure.– Traffic flow studies – Identify target areas or corridors– Cost benefit analysis of implementation– Communications plan– Maintenance and replacement plan– Central software (ATIS/ATMS) acquisition and

development plan

Best approach for funding ITSBest approach for funding ITS

Have project listed on the TIP/STIP

Convert (divert!) typical highway funding into multi-year program for ITS implementation– STP Flex/CMAQ?

Collaborate with County and City governments on regional ITS solutions

Patience is a virtuePatience is a virtue

Learn the funding cycles (Is you agency on a fiscal year? Calendar year?)

Learn the names and garner the support of those who write the checks (equivalent to accounts payable), pay the bills, manage the programs, and know their way around the funding cycles

Learn your own accounting system (PIN numbers, funding categories, coding, etc….)

Be aware of political processBe aware of political process

Elections can be show stoppers Approvals just after an election can be good for

stability (four years to carry out an implementation)

Work hard for cross-jurisdictional projects– State DOT and State Police– State DOT and Tolling Authority– State DOT and County of City government– Highway and transit

Monitor ongoing maintenance Monitor ongoing maintenance and construction projectsand construction projects

Integrating ITS elements into planned construction projects is typically a fraction of project costs

One person can monitor all planned construction projects as part of their duties

Bury fiber whenever possibleMaintenance contracts can also be monitored

for additions to your ITS network

ConclusionConclusion

There is a lot of Federal money out there right now, strike while the iron is HOT!!!

It will be spent rapidly If you can’t get your stand alone ITS project

funded on this cycle, find projects that are receiving funding on your priority corridors and collaborate

Have your plans summarized at different levels Publish your plans in news letters or white papers