1. TRANSPORTATION PROGRAMS Financial Planning and Fiscal Constraint Requirement MAG Regional Council February 24, 2010

2. Copyright © 2010 TRANSPORTATION PROGRAMSFINANCIAL PLANNING AND FISCAL RESTRAINT Fiscal Constraint Transportation Improvement Program (TIP) must be constrained to committed revenues. Regional Transportation Plan (RTP) must be constrained to reasonably available revenues. Costs for operations and maintenance of the transportation system must be addressed in the RTP. November 2009 Certification by FHWA / FTA recommended that MAG produce a Financial Report to document revenues and financial assumptions. Concern by FTA on operating funds for grants for expanded or new service. MAG is being asked to verify operating funds. Limitation on TIP amendments after March 31, 2010 until TIP until current financial environment reflected.

3. Copyright © 2010 TRANSPORTATION PROGRAMSFINANCIAL PLANNING AND FISCAL RESTRAINT Financial Information Current levels of funding for streets and transit capital and operations / maintenance. Sources of revenue. Documentation of local transportation sales tax projections. Revenue enhancements or changes currently planned.

4. TRANSPORTATION PROGRAMS Status of Federal Highway Funding

5. Copyright © 2010 TRANSPORTATION PROGRAMSFINANCIAL PLANNING AND FISCAL RESTRAINT Multi-year Authorization act (SAFETEA-LU Multi-year Authorization act (SAFETEA-LU Annual Appropriations Act Apportionment - Distribution to States Unobligated Balances of Prior Years’ Distributions Total Federal –aid Available for Year OA: Obligation Limitation (usually less than 100%) Federal-aid Eligible to be Obligated for the Year Federal Highway Funding Process

6. Copyright © 2010 TRANSPORTATION PROGRAMSFINANCIAL PLANNING AND FISCAL RESTRAINT Multi-year Authorization act (SAFETEA-LU Multi-year Authorization act (SAFETEA-LU Annual Appropriations Act Apportionment - Distribution to States Unobligated Balances of Prior Years’ Distributions Total Federal –aid Available for Year OA: Obligation Limitation (usually less than 100%) Federal-aid Eligible to be Obligated for the Year Federal Highway Funding Process with Rescission $171 million Rescission for Arizona

7. Copyright © 2010 TRANSPORTATION PROGRAMSFINANCIAL PLANNING AND FISCAL RESTRAINT Current Status of Federal Funds Continuing resolution through February 28, 2009. Maintains FY 2009 funding levels after rescissions 30 percent loss of funding if not removed. Senate passed bill yesterday Revokes the rescissions at least for FY 2010 Adds funding for the Highway Trust Fund Extends the Program through 2010 ADOT is reconciling the federal fund accounts Impact of rescissions on planned carry-over funds unknown Ledgers needed to confirm funding available – last ledger that MAG has is for October 2008.

8. Copyright © 2010 TRANSPORTATION PROGRAMSFINANCIAL PLANNING AND FISCAL RESTRAINT Key Federal Transportation Finance Terms Authorizations: Set forth in SAFE-TEA-LU, maximum annual funding by year. Appropriation: Sets the actual amount of funding for the program. Apportionment: The distribution of the funds using a formula. Obligation Authority (OA): The % of apportionments that can be obligated in the year. Rescission: A act by Congress to revoke apportionment.

9. TRANSPORTATION PROGRAMS For more information: Contact Eric Anderson, MAG Transportation Manager