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Oregon

Planning Context

Oregon's 27-year tradition of integrated statewide transportation and land use planning provides the context for financial planning. Comprehensive planning at local and regional levels is supported by state regulations. Every community develops a comprehensive plan and local land use that must be consistent with state goals.

According to Oregon DOT (ODOT) staff, passage of ISTEA and TEA-21 has encouraged the further evolution of the State's integrated approach to statewide planning. Prior to ISTEA, ODOT targeted funds to eight sub-areas, which then selected projects locally. These projects were then reflected in the STIP. After ISTEA, ODOT moved to a more coordinated and integrated approach, improving links between statewide and local transportation planning.

With encouragement from the federal planning requirements, ODOT has worked with its partners to strengthen links to planning in metropolitan areas by MPOs and in non-metropolitan areas by local and regional authorities. To accomplish this more integrated approach, Oregon divides the State into different sub-areas for several purposes that are relevant to statewide transportation planning.

• Oregon DOT uses five regional offices for planning and programming purposes.
• Under the Governor's Livability Initiative, there are five agencies throughout the State that support an integrated approach to addressing local issues.
• The Federal Transportation Equity Act for the 21^st Century (TEA-21) defines Transportation Management Areas with populations over 200,000 that must meet federal requirements for continuing, cooperative, and comprehensive transportation planning. Under the current Census, Oregon will add two new transportation management areas (TMAs), increasing from four to six MPOs. According to State planners, the MPOs are becoming effective at taking a regional planning approach.
• There are ten Area Commissions on Transportation (ACTs) in non-urbanized areas, which:
  • Are voluntary, flexible, and self-designated advisory bodies, chartered by the Oregon Transportation Commission, and formed in the late 1990's;
  • Have been formed by ten of the twelve eligible regions;
    • Most designate regional development organizations (RDOs) such as the Oregon Cascades West Council of Governments (COG) as the supporting organizations;
    • Sub-areas without ACTs can receive planning assistance from the State DOT.
  • Include members who are local officials, citizens, or representatives of local interest groups. The list of members is approved by the Oregon Transportation Commission and approved simultaneously with the ACT charter.
  • Perform an advisory role for statewide transportation planning, including providing a sounding board and forum for the statewide process;
    • This can include providing valuable public input.
  • Improve local understanding of and input to the STIP process, contributing to project selection, including prioritization and ranking;
  • Do not develop long-range plans such as those required for MPOs under TEA-21, but participate in identifying regional planning priorities.

Figure 1 indicates how the ACTs cover Oregon geographic regions. Note that Lane County has chosen not to become an ACT.

Figure 1: Oregon ACTs

According to ODOT contacts, the ACTs:

• Focus on regional and local transportation issues that affect the State system.
• Are to address all aspects of transportation (surface, marine, air, and transportation safety), but primarily prioritize bridge, preservations, safety, operations, transit and modernization projects;
• Interact with local organizations dealing with transportation issues;
• Play a key advisory role in development of the STIP by communicating local problems and priorities, and recommending projects;
• Expand opportunities for public involvement in statewide transportation planning.

Additional information is available on-line at Oregon DOT's website.

ODOT works closely with local and regional organizations, including the MPOs and the ACTs. Together, the ACTs and MPOs cover almost the entire State and ensure that there is a process for connecting local and statewide concerns through the transportation planning process.

The Statewide Transportation Planning Process and Financial Planning

Developing the Plan

The State long-range transportation plan sets broad directions for statewide transportation planning. There are well-established links between statewide transportation planning, including the statewide long-range plan and planning at local and metropolitan area wide levels. Communities are encouraged to develop land use plans that are linked to the OTP. Regional and local transportation system plans must be consistent with the OTP, and State and local transportation projects must be consistent with local land use plans.

The Oregon Transportation Commission (OTC) adopted the current Oregon Transportation Plan (OTP) in 1992. The OTP is:

• Multimodal, including, but not limited to, aviation, highways, public transit, bicycle, pedestrian walkways, pipelines, ports, rails and waterways;
• The umbrella document for a series of modal plans.

The Freight Advisory Committee, the Public Transit Advisory Committee, and special interest groups such as the 1000 Friends of Oregon and bicycle advocacy groups, provide stakeholder input on problems, policies, and needs, as opposed to proposing specific solutions. The OTP places the highest priority on investments in the State transportation system that promote safety and on improvements in managing and preserving infrastructure and services.

The OTP identifies four major statewide transportation goals, and provides policies and actions to guide decisions to implement each goal. The four goals are:

1. Characteristics of the System -- Enhance economic advantage and quality of life by providing a transportation system with the following characteristics:
   • Balance
   • Efficiency
   • Accessibility
   • Environmental Responsibility
   • Connectivity among Modes and Carriers
   • Safety
   • Financial Stability
2. Livability - Develop a multimodal system that provides access to the entire state, supports land use plans, is sensitive to regional differences, and supports urban and rural livability.
3. Economic Development - Promote expansion and diversity of the economy through efficient movement of goods, services and passengers in a safe, energy-efficient and environmentally sound manner.
4. Implementation - Implement the OTP by creating a stable but flexible financing system; good management; through research and technology; and by working cooperatively with federal, regional, and local governments, Indian tribal governments, the private sector, and citizens.

The OTP provides a series of performance measures for each goal. The measures are used to identify trends and progress from 1990 through forecasts in 2010. By defining minimum levels of service for transportation systems, the OTP allows progress to be measured. The OTP also targets specific Oregon Benchmarks (see below) for:

• Urban mobility
• Air quality
• Livability
• Economic prosperity

Although the 1992 multimodal OTP is still the current plan, ODOT is in the process of updating the Oregon Transportation Plan, which it anticipates completing in early 2006. ODOT produced the 1999 Oregon Highway Plan, which is a major update to the highway component of the OTP. The Highway Plan refines goals, policies, and investment strategies for the State highway system for the next 20 years. The Highway Plan provides investment scenarios with associated investment strategies, and is fiscally constrained. The Highway Plan is available online.

The Highway Plan has three main elements:

• The Vision for the future, with economic and demographic trends, technologies, and policy and legal context.
• The Policy Element with goals, policies, and actions in five areas: system definition, system management, access management, travel alternatives, and environmental and scenic resources.
• The System Element with analysis of highway needs, revenue forecasts, investment policies and strategies, an implementation strategy, and performance measures.

To assist local areas, ODOT developed Transportation System Planning Guidelines.

Cities and counties above a threshold develop a transportation systems plan; these are not fiscally constrained. Eighty percent of the 296 jurisdictions in the State have developed or are in the process of completing their transportation system plans (174 are adopted by the local governments). MPOs produce long-range plans and TIPs to meet the planning requirements of TEA-21, including those for fiscal constraint.

The State also has freight, public transit, bicycle/pedestrian, and other advisory committees. Consistent with the emphasis on a "bottoms-up" approach, the State encourages integration of land use and transportation planning by requiring local transportation plans to be consistent with land use plans. Of the 174 plans currently adopted by local governments, 106 are considered compliant with the statewide planning goals.

Financial Planning and Fiscal Constraint

Priority Setting

The OTP looks at long-range investments in categories rather than for specific projects, and demonstrates the impacts of three funding scenarios:

• Forecast
• Moderate increase
• Preferred funding

The OTP shows impacts for highway, transit, bicycle/pedestrian, air, rail, and ports in terms of ability of the State to:

• Maintain below the current level
• Maintain at current level
• Improve the system

The 1998 Status Report and Constrained Investment Strategy did not amend the OTP, but updated information on the status of the State transportation system. The Status Report presents trends from 1990 to 1997 and projections to 2010 in key policy level measures established in the OTP (see discussion of performance measures below). The Status Report also provides a "constrained investment strategy" that:

• Updates revenue forecasts.
• Defines a role for ODOT as "an important investment partner" along with local governments in implementing the OTP.
• Meets the OTP goals within the 20-year time horizon for forecasting revenue and expenses.
• Describes in general terms three funding and investment scenarios for implementing the OTP.
  1. Current Forecasted - highway and transit systems gradually deteriorate.
  2. Moderate Increase - meets growth and inflation and improves maintenance and preservation of highways.
  3. Preferred Funding - funding is adequate to address goals for all modal areas.

The OTP identifies the funding shortfalls for statewide investment categories for the preferred program. User costs and congestion still increase, but to a lesser extent than under Scenarios 1 and 2.

The State works with the MPOs on the long-range revenue forecasts, which it provides to them for the metropolitan area long-range plans and TIPs. ODOT also works with the MPOs on area-wide travel forecasts. ODOT produced Financial Assumptions for the Development of Metropolitan Transportation Plans, which it updated in 2000 to reflect federal reauthorization under TEA-21, with revised estimates of inflation and distributions to TMAs and non-TMAs through 2023. The assumptions were not revisited in 2000 but are currently being revised in anticipation of the reauthorization.

Developing the STIP

The STIP is an important decision-making document rather than one formed in separate and independent components at local levels. According to State DOT contacts, State residents did not understand how the STIP process worked prior to important public outreach refinements, such as establishment of the ACTs. The State brought together a STIP Stakeholder Committee to identify needed improvements. One key recommendation was soliciting input from the local, regional, and metropolitan area plans prior to allocating funds by program and region.

The STIP Process Stakeholder Committee:

• Provides advice feedback and recommendations to the OTC for improvements to the STIP process.
• Was formed in 2001, when it began by assisting with project selection criteria and prioritization.
• Relies on objectives provided by the OTC.
• Members include representatives of the Association of Oregon Counties, League of Cities, Portland Metro, 1000 Friends of Oregon, American Automobile Association, a Council of Governments, and FHWA.
• Chaired by an OTC Commissioner.

ODOT switched the STIP from a six-year to a four-year document because of difficulty forecasting the last two years accurately.

• Year One is fiscally constrained
• Years Two and Three are programmed above the obligation limitation (in particular, the MPOs' TIPs), not to exceed the authorized amount
• Year Four is provided "for information"

The STIP is updated every two years and amended frequently.

• The cycle starts two years prior to final approval, increasing the importance of accurate forecasting.
• Fiscal constraint is based on obligation limits.
• The State investment program is "needs based."
• The State continues to use the ISTEA pavement, safety, bridge, congestion, and freight management systems.
  • Approximately two-thirds of Oregon's highway investment program is controlled by management systems.
  • The management systems provide information on project development, inventory, and needs.

In 2003 the OTC approved project eligibility criteria and prioritization factors and an associated process for the 2006-2009 STIP. The first use of eligibility criteria occurred with the 2004-2007 STIP. The OTC establishes goals, funding levels, and regional funding distribution at the start of each two year STIP update cycle. In making final project selections, the OTC considers advice and recommendations from the ACTs, MPOs, and regional and statewide advisory groups.

The current STIP is divided into two sections:

• The Development STIP, with eligibility criteria to select projects that
  • Address unmet transportation needs in the Transportation System Plan, are identified as a project of statewide significance, or are a federal discretionary project;
  • Have adequate funding to meet identified milestones.
• The Construction STIP, with eligibility criteria to select:
• Modernization projects that are consistent with local government Transportation System Plans and the Oregon Highway Plan;
  • Pavement Preservation projects identified through the Pavement Management System process.
  • Bridge replacement and rehabilitation projects identified through the Bridge Management System process and that are improvements or work needed to rebuild or extend service life of existing structures.

The Project Eligibility Criteria and Prioritization Factors are described on-line (PDF, 272KB).

Modernization investments are based on the following factors:

• Population
• Vehicle Miles Traveled
• Ton-miles traveled
• Vehicle Registrations
• Modernization needs as identified in the Oregon Highway Plan

Constraining the Oregon STIP Determine amount of expected revenue, both state and federal. Deduct items that are taken off the top to determine net state revenue available to the STIP and net federal revenue available to the STIP. Allocate available funds for the STIP to various programs, by region, according to state law, system needs, and OTC direction. Regional/problem targets are distributed to the region. Compile projects into the draft STIP in accordance with available revenue and regional/program targets. Analyze project list to determine total of funded projects by year, by program, and by fund type. Compare analysis to expected revenue and to regional/program targets, by year. Make any adjustments necessary to balance to the regional/program targets with available state and federal revenue.

Using Performance Measures

Oregon provides a valuable national model for how performance measures can be applied in transportation planning at statewide, metropolitan area, and local levels.

• Statewide performance measures are set for all sectors, including transportation, by the Oregon Progress Board, an independent State planning and oversight agency.
  • The Progress Board was created by the Legislature in 1989 and is chaired by the governor to focus on the future. The Board is responsible for implementing the State\'s 20-year strategic plan.
• As part of its responsibility to focus on the future, the Progress Board has developed "Oregon Benchmarks" -- 90 high-level quality of life indicators in seven categories: economy, education, civic engagement, social support, public safety, community development and environment.
  • ODOT is responsible for relating statewide transportation plans and programs to the Benchmarks.
• ODOT cross-references many of the performance measures in the statewide planning process to Oregon Benchmarks both indirectly (e.g., rural jobs, disabled employment, carbon dioxide emissions, and air quality) and directly (vehicle miles traveled, travel delay, and road condition).
• The policy level outcomes in the Oregon Transportation Plan Update track progress from 1990 to forecast outcomes in 2010 for the following goals and Benchmark measures:
  • Access/Mobility: Percent of Oregonians commuting by non-SOV mode.
  • Land Use: Annual VMT/capita in metropolitan areas
  • Air Quality: Percent of Oregonians in communities where air quality meets standards.
• The investments and strategies in the Plan and the STIP are identified and implemented to provide progress toward meeting the high-level statewide goals. Progress is measured using the Benchmark and other performance indicators.

Information on the Oregon Progress Board, Oregon Benchmarks, and related transportation indicators and benchmarks is available at: http://www.odot.state.or.us/performance/.

Observations from Oregon DOT

ODOT planners offered the following observations related to financial planning:

• The value of exchanging ideas and experiences with State DOT peers on how to:
  • bring State perspectives to regional and local levels, particularly with the MPOs. For example, how do other states such as California and Florida communicate statewide prioritization to local and regional areas?
  • define and analyze future needs, and perform trade-offs between the costs and performance of alternative investments, and bring modal plans together.
  • assess the performance of the "big picture" and long-range options as developed in the long-range plan.
  • consider fiscal constraint in the long-range plan at the level of local or regional jurisdictions, particularly in a way that reflects the scale of the jurisdiction.
• The need for succession planning for those involved in the complex STIP process.
• The importance of improving the knowledge level of economics and economic development within the statewide planning process. The finance function is also undervalued, particularly modeling and cost estimation.
• Fiscal constraint as a very useful aspect of the STIP. "It is very important to us, not just a federal requirement federal encouragement is reinforcing." Fiscal constraint is critical to planning successful projects.

Contact

Jerri Bohard
Jerri.L.Bohard@odot.state.or.us
Oregon Department of Transportation
555 13^th Street, NE, Suite 2
Salem, OR 97301-4178