Transportation Operations inTransportation 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
Advanced Traveler Information Systems (ATIS)
Automated Traffic Management Systems (ATMS)
Congestion management/congestion pricing
– Limited access, eligibility requirements, etc.
The real reason for ITS:The real reason for ITS:
CRASH PREVENTIONCRASH PREVENTION
6,420,000 auto accidents in the United States in
The financial cost of these crashes is more than
230 Billion dollars.
2.9 million people were injured and 42,636 people
About 115 people die every day in vehicle crashes
in the United States -- one death every 13 minutes.
Context: What makes ITSContext: What makes ITS
hard to plan for and fund?hard to plan for and fund?
agencies it is a foreign
concept that there is a
type of project that
does not end.
financing is typically
rigid and habitual.
design – both required
elements of ITS
systems – are typically
not found in a
Federal ITS Programs
Statewide/Regional ITS Programs
Local ITS Programs
– New York
– Los Angeles
– Salt Lake City
American Recovery andAmerican 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.
Transportation funds:Transportation funds:
Not just for USDOT…..Not just for USDOT…..
142M to Coast Guard for alteration or removal of
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.
$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 – 1,300M
FTA – 6,900M
FCC – 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 1997
TEA-21 – 1999 to 2003
SAFET-LU – 2003 to 2009…….
CAA - 1990
CAAA - 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
SAFET-LU 2003 to 2009SAFET-LU 2003 to 2009
Apportionment Category Total for 6 years
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 areas
The ARRA does not even mention ITS
ARRA model vs. ISTEA modelARRA model vs. ISTEA model
ARRA = Federal agency staff determines
– By program?
– By project?
Surface Transportation Legislation =
State Governments determine programming
policies for funding, following established
Onward and UpwardOnward 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 gapsSource: 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
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
– 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
Best approach for funding ITSBest approach for funding ITS
Have project listed on the
Convert (divert!) typical
highway funding into
multi-year program for
– 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
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 maintenanceMonitor 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 possible
Maintenance contracts can also be
monitored for additions to your ITS
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
Have your plans summarized at different levels
Publish your plans in news letters or white papers