INFORMATION: TIP/STIP Expirations
TO THE ATTENTION OF: Divisions' Administrators and Planners
The purpose of this message is to address a question that a number of divisions have raised regarding, what budget numbers should the states use if their TIPs/STIPS expire before Reauthorization is enacted? This is a particularly relevant issue because of the necessity for all divisions to be consistent in the following guidance.
The language contained in the preamble to the FHWA/FTA Statewide and metropolitan transportation planning rule (published in the October 28, 1993 Federal Register (58-207)) states:
Where the Transportation Plan or TIP period extends beyond the current authorization period for Federal program funds, "available" funds may include an extrapolation based on historic authorizations of Federal funds that are distributed by formula. For Federal funds that are distributed on a discretionary basis, including (former FTA) Section 3 and "demo funding," any funding beyond that currently authorized and targeted to the area should be treated as a new source and must be demonstrated to be a "reasonably available new source."
The above applies to both the TIP and STIP. Therefore, for determining future years' authorizations/apportionments, the growth rate as determined through the previous authorizations can be used to approximate the future annual growth rate of Federal authorizations. For example, since TEA-21 was a six-year bill, the growth rate should be determined over the entire authorization period (FY 1998 - FY 2003), but excluding the RABA from the calculations.
For discretionary funding, the annual discretionary apportionment is determined based on the entire amount of the discretionary program for FY 1998 - FY 2003, and then allocated on an annual basis, as follows:
This is an interim approach. Upon the enactment of new authorizing legislation, State DOTs (in conjunction with MPOs) will need to utilize the actual authorization levels and individual discretionary project funding amounts in the development of any future new TIP/STIP or amendment of an existing TIP/STIP.
Also, please not even in instances in which authorized Federal funding levels are uncertain, fiscal constraint of metropolitan long-range transportation plans, TIPs, and STIPs remains a key Federal stewardship and oversight responsibility. This is particularly crucial for the first two years of TIPs in air quality nonattainment and maintenance areas, in which Federal funding sources must be available or committed. Specific regulatory references on this aspect of the STIP and TIP are located in 23 CFR 450.216(a)(5) and 23 CFR 450.324(e), respectively.
If you have any questions on this issue, please do not hesitate to contact Larry Anderson or me. Thank you for your cooperation.
Gloria Shepherd
