The purpose of this memorandum is to formally transmit the attached summary document "Lessons Learned in Fiscal Constraint." These lessons have been gathered from the experiences of several Division Offices and should be used in conjunction with the Interim Guidance on Fiscal Constraint jointly published by FHWA and FTA on June 30, 2005. That interim guidance has since been fully integrated into the Notice of Proposed Rulemaking on statewide and metropolitan transportation planning that was published in the June 9, 2006 Federal Register (open for public comment until September 7, 2006).
Based on input from several Division Offices, this document identifies key issues to consider as you work with FTA Regions in engaging your States and MPOs in a discussion of fiscal constraint. We would like to share some lessons others have learned on how to verify the financial elements of transportation plans and programs produced by the States and MPOs. You will also see how some of your colleagues have navigated some particularly complex and challenging sets of financial issues.
Immediately below and at the conclusion of these "lessons learned" is a set of fundamental questions that should be posed as an initial "litmus test," on financial plans/fiscal constraint for metropolitan transportation plans, TIPs, and STIPs:
- Are operations and maintenance costs (highway and transit) reflected in the financial plans?
- Are capital costs (highway and transit) reflected in the financial plan?
- What are the underlying assumptions for the revenue forecasts reflected in the financial plan?
- Are costs in metropolitan transportation plans, TIPs, and STIPs shown as "year of expenditure" dollars?
If you have any questions please do not hesitate to contact Gloria M. Shepherd, Director, Office of Planning (202) 366-0106 or email gloria.shepherd@dot.gov.
To provide Feedback, Suggestions or Comments for this page contact Harlan Miller at harlan.miller@dot.gov.
