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Effectiveness of Transportation Funding Mechanisms for Achieving National, State and Metropolitan Economic, Health and Other Livability Goals

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Effectiveness of Transportation Funding Mechanisms for Achieving National, State and Metropolitan Economic, Health and Other Livability Goals FINAL REPORT Effectiveness of Transportation Funding Mechanisms for Achieving National, State and Metropolitan Economic, Health and Other Livability Goals NITC-RR-875 February 2018 NITC is a U.S. Department of Transportation national university transportation center. EFFECTIVENESS OF TRANSPORTATION FUNDING MECHANISMS FOR ACHIEVING NATIONAL, STATE AND METROPOLITAN ECONOMIC, HEALTH AND OTHER LIVABILITY GOALS Final Report NITC-RR-875 by Rebecca Lewis Robert Zako Alexis Biddle Rory Isbell University of Oregon for National Institute for Transportation and Communities (NITC) P.O. Box 751 Portland, OR 97207 February 2018 Technical Report Documentation Page 1. Report No. 2. Government Accession No. 3. Recipient’s Catalog No. NITC-RR-875 4. Title and Subtitle 5. Report Date Effectiveness of Transportation Funding Mechanisms for Achieving National, State and February 2018 Metropolitan Economic, Health and Other Livability Goals 6. Performing Organization Code 7. Author(s) 8. Performing Organization Report No. Rebecca Lewis Robert Zako Alexis Biddle Rory Isbell 9. Performing Organization Name and Address 10. Work Unit No. (TRAIS) Robert Zako 11. Contract or Grant No. 1209 University of Oregon Eugene, OR 97403-1209 NITC- RR- 875 12. Sponsoring Agency Name and Address 13. Type of Report and Period Covered National Institute for Transportation and Communities (NITC) Final Report P.O. Box 751 August 2015 – February 2018 Portland, OR 97207 14. Sponsoring Agency Code 15. Supplementary Notes 16. Abstract Federal, state and local governments spent approximately $320 billion on transportation in 2012. These public monies buy outputs: facilities and services for highways, transit, air, water, rail and pipelines (BTS, 2016, 110–114, table 5-5). But how effectively do these investments deliver desired outcomes: reducing commute times, improving the economy, supporting community development, enhancing public health, providing cleaner air, and advancing other livability goals? The Moving Ahead for Progress in the 21st Century Act (MAP-21), adopted in 2012, established national performance goals, called for the development of performance measures and targets, required that targets be incorporated into plans and programs, and required reporting on progress in meeting targets (FHWA, 2013a). MAP-21 directs states and MPOs to use performance measures and targets. But little has been written about how to integrate performance measures, especially outcomes measures, into all phases of transportation decision-making. In particular, little attention has been given to how existing governance and finance structures can frustrate efforts to achieve desired outcomes cost effectively. States and MPOs have different mechanisms for allocating funding from various sources to transportation projects and programs: the Federal Highway Trust Fund, state gas and sales taxes, etc. Many funding sources are dedicated to particular uses. For example, 27 states limit the use of gas and other motor vehicle taxes to just investments in roads. In some states, transportation commissions allocate funding; in others, the legislature or governor decides bridges (AASHTO, 2016, 52–69). Though performance measures are becoming more pervasive because of federal policy, and each state has goals in long-range plans, we sought to understand how planning, governance and finance, programming and reporting on performance were integrated. Essentially, we sought to understand how states and MPOs were spending transportation funding in alignment with goals in transportation plans, and how states and MPOs report outcomes to citizens. We looked closely at six case study states, as well as a selected MPO in each state. While we found good practices in some states, we found little evidence of states clearly linking planning, governance and finance, and programming systematically. Further, we found that states report outputs rather than outcomes. We provide recommendations for better linking planning, governance and finance, programming, and reporting to improve accountability and transparency. 17. Key Words 18. Distribution Statement accountability, transparency, planning, governance, finance, programming, No restrictions. Copies available from NITC: evaluation and assessment, reporting, performance measurement, state nitc.trec.pdx.edu departments of transportation, metropolitan planning organizations 19. Security Classification (of this report) 20. Security Classification (of this page) 21. No. of Pages 22. Price Unclassified Unclassified 163 i ACKNOWLEDGEMENTS This research was funded in part by the National Institute for Transportation and Communities (NITC), a program of the Transportation Research and Education Center at Portland State University and a U.S. Department of Transportation University Transportation Center. The team gratefully acknowledges state department of transportation (DOT) and metropolitan planning organization (MPO) staff who volunteered their time to be interviewed and review drafts. DISCLAIMER The contents of this report reflect the views of the authors, who are solely responsible for the facts and the accuracy of the material and information presented herein. This document is disseminated under the sponsorship of the U.S. Department of Transportation University Transportation Centers Program in the interest of information exchange. The U.S. Government assumes no liability for the contents or use thereof. The contents do not necessarily reflect the official views of the U.S. Government. This report does not constitute a standard, specification, or regulation. RECOMMENDED CITATION Lewis, Rebecca, Robert Zako, Alexis Biddle, and Rory Isbell. Effectiveness of Transportation Funding Mechanisms for Achieving National, State and Metropolitan Economic, Health and Other Livability Goals. NITC-RR-875. Portland, OR: Transportation Research and Education Center (TREC), 2018. iii TABLE OF CONTENTS EXECUTIVE SUMMARY .......................................................................................................... 1 1.0 INTRODUCTION ................................................................................................................. 5 1.1 TRANSPORTATION DECISION-MAKING ................................................................... 8 1.1.1 Performance Management ........................................................................................ 11 1.2 GOVERNANCE AND FINANCE ................................................................................... 16 1.2.1 Federal Role .............................................................................................................. 17 1.2.2 State and Local Role ................................................................................................. 19 2.0 LITERATURE REVIEW .................................................................................................. 21 2.1 POLICY CONTEXT ........................................................................................................ 21 2.2 PRIOR RESEARCH ......................................................................................................... 21 2.3 RESEARCH GAP ............................................................................................................. 22 3.0 METHODOLOGY ............................................................................................................. 23 3.1 CASE STUDY SELECTION ........................................................................................... 23 3.2 PLAN AND POLICY ANALYSIS .................................................................................. 24 3.3 STATUTORY ANALYSIS .............................................................................................. 25 3.4 ALIGNMENT WITH GOALS ......................................................................................... 26 3.5 ECONOMIC DEVELOPMENT, HEALTH OR LIVABILITY GOALS ........................ 26 4.0 CASE STUDIES .................................................................................................................. 27 4.1 CALIFORNIA .................................................................................................................. 27 4.1.1 Governance ............................................................................................................... 27 4.1.2 Finance ...................................................................................................................... 31 4.1.3 Planning .................................................................................................................... 38 4.1.4 Programming ............................................................................................................. 40 4.1.5 Reporting ................................................................................................................... 42 4.2 MASSACHUSETTS......................................................................................................... 43 4.2.1 Governance ............................................................................................................... 43 4.2.2 Finance ...................................................................................................................... 47 4.2.3 Planning .................................................................................................................... 50 4.2.4 Programming ............................................................................................................. 54
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