SAFETEA-LU in Montana

1
SAFETEA-LU in Montana

• Montana did very well under SAFETEA-LU
• Authorized Program Increase over TEA-21 program
  of 42
• Return on contributions to the Highway Trust Fund
  gt 219
• Contributions to the trust fund Federal Fuel
  Tax Receipts
• SAFETEA-LU Nationally 181.9 billion (05 09
  hwys)
• Montanas apportionments 1.775 billion (about
  30 increase over TEA-21)
• Due to the Equity Bonus Protection Montanas
  share of program will not degrade over time (it
  did under TEA-21)

So Where is the Money??
2
Funding TermsAuthorization, Apportionment
Obligation

• Authorization
• SAFTEA-LU is a 5-year Authorization Bill
  (2005-2009)
• Sets the level of funds that can be used from the
  Highway Trust Fund for Title 23 USC programs.
• Consider this the maximum program funding level
  in a perfect world reality is much different.
• Authorized amounts, called authority, is
  generally the published funding amount it makes
  the best press release.
• Apportionment
• How authority is distributed to states on a by
  program basis - (Intestate Maint., National
  Highway, Surface Transportation, etc)
• Most Apportioned dollars are distributed based on
  a states characteristics (Interstate Lane Miles,
  Highway Trust Fund Receipts, Vehicle Miles
  Traveled, etc)
• Obligation Authority
• Actual Spendable Dollars!!
• Generally is not program specific the states
  have some level of program flexibility
• Is never 100 of the available spending authority
• Set each year during the Appropriations Process
• Appropriations annual budget process to
  establish program levels for the next Federal
  Fiscal Year.

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Obligation Limitation Impact on MDTs Core Program
Think of it as a refining process FY 06 as an
example
33.9 Billion Authorized For National Program
Apportioned to Montana
Reduced to reflect 87.1 Obligation
Authority (set in annual Approps)
Core Program Apportionment
333.4 million
323.6 million
281.9 million
This is what we can spend on MDT Projects!
Less Non-Core Section 1702 Earmarks
9.8 million
For Comparison FY 2003 Obligation Authority
for Core Programs was 277 million
Notes Approximately 70 of the projects named
for Montana in Section 1702 were from MDTs Core
Program categories. The remaining 30 are
directed to projects that are not MDT priorities.

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SAFETEA-LU Funding Estimates Little Actual
Program Growth in Spendable Dollars
SAFETEA-LU
Millions
SAFETEA-LU Spendable Dollars
FY 2003
When the obligation limit is taken into account
we see very little growth
Notes Obligation limitation is 85 of
Apportionment. Years beyond FY 2009 estimates
based on Highway Trust Fund balance projections
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In-State Funding Distribution

• State Wide Funding Distribution
• Core Programs
• 70 of funds Follows TEA-21 Level of
  investment in these areas
• This level of investment is necessary to maintain
  the integrity of the system (includes IM, NH,
  STP - with EB distribution and HPP projects)
• New Core Safety Program
• Replaces STP Safety set-asides
• An increase for safety at a greater rate than the
  overall program rate of increase
• Secondary Program
• Increased by 2 million annually
• New Urban Pavement Preservation Program
• Projects selected by Locals and MDT DAs
• New Borders Program
• Funds must be used within 100-miles of
  international border - non-transferable
• New X-Route Program Currently, these roads
  have no funding source

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Complicated In-State Distribution 21 programs
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Earmarks Above the line/Below the line

• In SAFETEA-LU the line divides what counts
  against a
• states guaranteed percent share of the program.
• Below the line do, above the line doesnt.
• What does this mean?
• If a state has below the line projects named that
  are not identified priorities it takes those
  funds away from the core program projects.
• SAFETEA-LU Section 1702 High Priority Projects
• Below the line
• 14 Named Projects total 164.6 million
• Count against MDTs Share of the program
• 20 distributed each year of the bill
• Again, Montana did very well.
• About 70 of these projects came from MDTs
  approved TCP Critical to MDTs program Delivery
• SAFETEA-LU Section 1934 Transportation
  Improvement Projects
• Above the line projects
• 19 Named Projects total 153.625 million

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Earmarks

• For Both Above and Below the Line
• Obligation authority available until expended
• A state can borrow from other projects within
  that state to fund those that are ready at the
  earliest date
• Dont have to wait until FY09 to receive the
  entire amount
• All funds borrowed must be paid back by the end
  of this authorization.
• One exception House named projects are not
  eligible for the borrow provision
• (S-323 Ekalaka to Alzada in MT)
• All are subject to the Sliding Scale Match
• 86.58 Fed / 13.32 Non-fed
• MDT will match projects that are ours, other
  recipients must match their projects.

Questions??