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U.S. Department of Transportation
Federal Highway Administration

NOTICE

FEDERAL-AID HIGHWAY PROGRAM OBLIGATIONS
FISCAL YEAR (FY) 1997 - AFTER AUGUST 1, 1997

N 4520.146
July 28, 1997


  1. PURPOSE. To provide procedures governing determination and redistribution of unneeded balances of FY 1997 obligation authority and to establish a State-by-State limitation of additional obligation authority available under Section 310(e) of the Department of Transportation and Related Agencies Appropriations Act, 1997 (Public Law (P.L.) 104-205).

  2. BACKGROUND

    1. P.L. 104-205 provides for redistribution, after August 1, 1997, of any authority distributed to a State for FY 1997 if the State will not obligate the authority during FY 1997.

    2. A total of $17.076 billion in obligation authority was distributed by formula to the States for FY 1997. The remaining $1.618 was withheld from distribution to support the obligation of non-formula funds, the Federal Lands Highway Program and funds necessary for administration of the FHWA during FY 1997.

    3. Amounts of unneeded obligation authority initially distributed by formula will be identified separately from unneeded balances of authority reserved from formula distribution and used to support obligations of FY 1997 allocations of non-formula, Federal Lands and Administration funds.

  3. REDISTRIBUTION OF UNOBLIGATED FY 1997 AUTHORITY INITIALLY DISTRIBUTED BY FORMULA

    1. To provide a basis for determining, (1) the amount of FY 1997 obligation authority initially distributed by formula that will be available for redistribution among the other States after August 1, 1997, and (2) those States that are able to obligate amounts in addition to that previously distributed, each State shall submit a plan by August 8, 1997, to the Division Administrator showing:

        (1) the July 31, 1997, unobligated balance of obligation authority, and

        (2) the projects and/or Federal funds that will be obligated, or could be obligated by the States by September 30, 1997, if additional authority is provided, or

        (3) the obligation authority that is excess to the needs of the State and is being released.

    2. The Division Administrator shall review the plan submitted by the State and reach an agreement with the State on those projects which could be approved and authorized by the Division office on or before September 30, 1997.

    3. By August 12, 1997, Division Administrators shall report to their Regional offices: (1) the amount of FY 1997 formula authority that is excess to the State's needs and is being released, or (2) that the State and Division Administrator have reached an agreement that the States' remaining unobligated FY 1997 formula authority that could be obligated by September 30, 1997. A summary of Division reports, by Region, shall be submitted to Washington Headquarters by August 14, 1997.

  4. RELEASE OF UNOBLIGATED FY 1997 AUTHORITY DISTRIBUTED TO SUPPORT OBLIGATIONS OF NON-FORMULA ALLOCATIONS (EXCEPT FEDERAL LANDS)

    1. No State will be provided with special obligation authority in FY 1998 to cover any unobligated FY 1997 allocations carried over on September 30, 1997.

    2. The amount of FY 1997 obligation authority distributed to support obligations of allocations of non-formula funds that will not be obligated by September 30, 1997, should be determined by the Division Administrator in consultation with the State.

    3. By August 12, 1997, Division Administrators shall report to their Regional offices the amount of FY 1997 non-formula funds and authority allocated to the States, the amount that will be obligated as of September 30, 1997, and the amount of obligation authority which is being released.

  5. REDISTRIBUTION OF FY 1997 AUTHORITY RESERVED FOR FEDERAL LANDS AND HEADQUARTERS CONTROLLED PROGRAMS

    1. Pursuant to FHWA Notice 4520.144, any non-formula (allocated) funds and associated limitation not obligated by July 31, 1997, will be withdrawn and made available for August redistribution. Federal Lands and Headquarters offices should notify the Budget Division (HFS-10) if they have a firm commitment that these unobligated amounts will be obligated by September 30, 1997.

    2. Each Associate Administrator should report the total obligations for their program(s) and the amount, if any, which will not be obligated by September 30, 1997, to the Budget Division (HFS-10) no later than August 12, 1997.

  6. OBLIGATION AUTHORITY PROVIDED BY SECTION 310(e) OF THE 1997 DOT APPROPRIATIONS ACT

    1. A State which obligates all of its FY 1997 obligation authority including amounts made available through August redistribution may obligate an additional amount (subject to a 2 1/2 percent national ceiling) of funds apportioned or allocated under 23 U.S.C. Sections 104 and 144, and 1013(c) and 1015 of P.L. 102-240, and for highway assistance programs under Section 103(e)(4) of 23 U.S.C. This additional amount will be provided with the August redistribution.

    2. The 2 1/2 percent national limitation will be determined based on States' July 31, 1997, unobligated balances of funds as prescribed by Section 310(e) less all States' July 31, 1997, unobligated balance of obligation limitation including amounts provided by August redistribution. The individual State limitation available under Section 310(e) will be determined by the same process used to determine the 2 1/2 percent overall national ceiling.

    3. As the State-by-State distribution of Section 310(e) limitation is subject to an overall national ceiling of 2 1/2 percent, it is important that accurate information be provided on the State's planned program obligations for FY 1997.

  7. REPORTS FROM REGIONAL OFFICES. Based on reports from Division offices, Regional offices shall submit reports in the attached format for each State in their Region. The reports shall be submitted to the Budget Division, HFS-10 (Fax 202/366-3295) so as to be received by close of business August 14, 1997.

  8. REDISTRIBUTION OF EXCESS FY 1997 OBLIGATION AUTHORITY

    1. A formula for redistribution of released obligation authority will be developed to implement the requirements of P.L. 104-205. Priority will be given to those States having large unobligated balances of funds apportioned under 23 U.S.C. 104, 144, 103(e)(4), and under Sections 1013(c) and 1015 of P.L. 102-240.

    2. The August redistribution under Section 310(c)(2) and additional obligation authority (bonus) provided by Section 310(e) of P.L. 104-205 shall be accomplished by August 25, 1997.

  9. PROGRAM MONITORING. The Washington Headquarters will monitor the program on a national basis to ensure that all available authority is fully utilized. FMIS Report LF07M40A is a national report and should be used by Division offices to monitor the additional as well as the bonus obligation authority.

Original signed by,

Anthony R. Kane
Executive Director

Attachment


ATTACHMENT
Status of 1997 Obligational Authority
(Formula and Non-Formula)
    Funds Allocated Authority Provided Balance of Available Obligational Authority as of 7/31/97 Projected Obligations Against Available Authority August/September 1997 Obligation Authority Released Additional Authority Required
    1 2 3 4 5 6
               
               
Formula: Total for all funds subject to the obligation ceiling.   $ $ $ $ $ $
               
"Non-Formula" and Federal Lands
The projected obligation against the obligation authority (Column 4) may not exceed the balance of available authority (Column 3).
               
a) List funds by title.   $ $ $ $ $ $
b) Account for all 1997 allocations.              
c) Any amounts reported in Column 5 should be footnoted to explain why.              
Non-Formula - Subtotal   $ $ $ $ $ $
State Total   $ $ $ $ $ $


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