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Statutory and Regulatory References to Fiscal Constraint

[Note: This document has been incorporated into and/or superseded by the FHWA/FTA Final Rule on statewide and metropolitan transportation planning and programming and congestion management processes / systems which was published in the Federal Register on February 14, 2007 and became effective on March 16, 2007. This Final Rule can be accessed at: HTML version: http://www.gpo.gov/fdsys/pkg/FR-2007-02-14/html/07-493.htm PDF version: http://www.gpo.gov/fdsys/pkg/FR-2007-02-14/pdf/07-493.pdf (394KB). - ed.] To view PDF files, you need the Acrobat® Reader®.

Statutory Provisions Regulatory Provisions
Statewide Transportation Plan
23 USC 135(e)(4) Financial Plan - The long-range transportation plan may include a financial plan that demonstrates how the adopted long-range transportation plan can be implemented, indicates resources from public and private sources that are reasonably expected to be made available to carry out the plan, and recommends any additional financing strategies for needed projects and programs. The financial plan may include, for illustrative purposes, additional projects that would be included in the adopted transportation plan if reasonable additional resources beyond those identified in the financial plan were available. 23 CFR 450.214(b)(6) Reference, summarize or contain information on the availability of financial and other resources needed to carry out the plan.
Statewide Transportation Improvement Program
23 USC 135(f)(2) (D) Requirement of anticipated full funding - The program shall include a project, or an identified phase of a project, only if full funding can reasonably be anticipated to be available for the project within the time period contemplated for completion of the project.23 USC 135(f)(2)(E) Financial Plan - The transportation improvement program may include a financial plan that demonstrates how the approved transportation improvement program can be implemented, indicates resources from public and private sources that are reasonably expected to be made available to carry out the plan, and recommends any additional financing strategies for needed projects and programs. The financial plan may include, for illustrative purposes, additional projects that would be included in the adopted transportation plan if reasonable additional resources beyond those identified in the financial plan were available. 23 CFR 450.216(a)(5) Be financially constrained by year and include sufficient financial information to demonstrate which projects are to be implemented using current revenues and which projects are to be implemented using proposed revenue sources while the system as a whole is being adequately operated and maintained. In nonattainment and maintenance areas, projects included in the first two years of the current STIP/TIP shall be limited to those for which funds are available or committed. In the case of proposed funding sources, strategies for ensuring their availability shall be identified;
Metropolitan Transportation Plans
23 USC 134(g)(2)(B) A financial plan that demonstrates how the adopted long-range transportation plan can be implemented, indicates resources from public and private sources that are reasonably expected to be made available to carry out the plan, and recommends any additional financing strategies for needed projects and programs. The financial plan may include, for illustrative purposes, additional projects that would be included in the adopted long-range transportation plan if reasonable additional resources beyond those identified in the financial plan were available. For the purpose of developing the long-range transportation plan, the metropolitan planning organization and State shall cooperatively develop estimates of funds that will be available to support plan implementation. 23 CFR 450.322(b)(11) Include a financial plan that demonstrates the consistency of proposed transportation investments with already available and projected sources of revenue. The financial plan shall compare the estimated revenue from existing and proposed funding sources that can reasonably be expected to be available for transportation uses, and the estimated costs of constructing, maintaining and operating the total (existing plus planned) transportation system over the period of the plan. The estimated revenue by existing revenue source (local, State, and Federal and private) available for transportation projects shall be determined and any shortfalls identified. Proposed new revenues and/or revenue sources to cover shortfalls shall be identified, including strategies for ensuring their availability for proposed investments. Existing and proposed revenues shall cover all forecasted capital, operating, and maintenance costs. All cost and revenue projections shall be based on the data reflecting the existing situation and historical trends. For nonattainment and maintenance areas, the financial plan shall address the specific financial strategies required to ensure the implementation of projects and programs to reach air quality compliance.
Transportation Improvement Programs
23 USC 134(h)(1)(C) Funding estimates - For the purpose of developing the transportation improvement program, the metropolitan planning organization, public transit agency, and State shall cooperatively develop estimates of funds that are reasonably expected to be available to support program implementation.23 USC 134(h)(2)(B) a financial plan that--(i) Demonstrates how the transportation improvement program can be implemented;(ii) Indicates resources from public and private sources that are reasonably expected to be available to carry out the program;(iii) Identifies innovative financing techniques to finance projects, programs, and strategies; and(iv) May include, for illustrative purposes, additional projects that would be included in the approved transportation improvement program if reasonable additional resources beyond those identified in the financial plan were available. 23 CFR 450.324(e) The TIP shall be financially constrained by year and include a financial plan that demonstrates which projects can be implemented using current revenue sources and which projects are to be implemented using proposed revenue sources (while the existing transportation system is being adequately operated and maintained). The financial plan shall be developed by the MPO in cooperation with the State and the transit operator. The State and the transit operator must provide MPOs with estimates of available Federal and State funds, which the MPOs shall utilize in developing financial plans. It is expected that the State would develop this information as part of the STIP development process and that the estimates would be refined through this process. Only projects for which construction and operating funds can reasonably be expected to be available may be included. In the case of new funding sources, strategies for ensuring their availability shall be identified. In developing the financial analysis, the MPO shall take into account all projects and strategies funded under title 23, U.S.C., and the Federal Transit Act, other Federal funds, local sources, State assistance, and private participation. In nonattainment and maintenance areas, projects included for the first two years of the current TIP shall be limited to those for which funds are available or committed. Financial Constraint - 23 USC
Conformity
Clean Air Act, as amended. 40 CFR 93.108 Fiscal constraint for transportation plans and TIPs. Transportation plans and TIPs must be fiscally constrained consistent with DOT's metropolitan planning regulations at 23 CFR Part 450 in order to be found in conformity
Updated: 04/25/2013
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