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Transportation Governance and Finance: a 50-State Review of State TRANSPORTATION GOVERNANCE AND FINANCE A 50-STATE REVIEW OF STATE LEGISLATURES AND DEPARTMENTS OF TRANSPORTATION A complex network of public and private organizations finances, plans, builds and operates the U.S. transportation system. Every TRANSPORTATION GOVERNANCE AND FINANCE U.S. jurisdiction has an elected legislative body that is broadly responsible for policies, programs and, to some extent, appropria- tions and program oversight, and an executive branch agency or department that is responsible for highway functions, under the authority of the governor or other lead executive. The structures and functions of these entities, however, vary widely across juris- A 50-STATE REVIEW OF dictions. Tight budgets in tandem with deteriorating infrastructure are challenging states to develop innovative approaches to governing STATE LEGISLATURES AND DEPARTMENTS OF TRANSPORTATION and financing transportation systems. Meaningful collaboration between state legislatures and state departments of transportation (DOTs)—while honoring appropriate checks and balances—is key to providing the high quality transportation system America needs to thrive. This unprecedented and authoritative analysis of state legislative-DOT interactions in transportation offers a baseline of the cur- rent situation, while pointing to ways states can learn from each other. Ideally, as the synthesis of approaches contained herein is absorbed, both legislatures and DOTs will be able to better evaluate how they manage and pay for transportation systems in light of the bigger picture, and to use this information to enhance their organizations, processes, collaborations and outcomes. In the end, greater proficiency in providing key public services creates value for taxpayers and contributes to economic competitive- ness and improved quality of life. This study—with its comprehensive state-by-state profiles and in-depth comparative synthesis— will aid the states in furthering such proficiency in transportation. “The report’s sometimes frank and direct findings offer an “States face well-documented challenges in providing and paying illuminating look at how differently DOT officials and legislators for transportation systems. This report offers hope by detailing view their roles in addressing the states’ difficult and growing alternative approaches that may inspire creative solutions, and it transportation needs.” deserves in-depth study by legislators and DOT officials alike.” —Jennifer Jones, Assistant Director, Texas Sunset Advisory —Senator Bruce Starr, Oregon Commission and NCSL-AASHTO Task Force Co-Chair “We know firsthand in Kansas how important it is to have a “This report is a valuable source book for how transportation “gets healthy relationship between the legislature and DOT officials, done” across the 50 states—a digest of the multiple ways that especially when advocating for funding in tough economic times. DOTs and legislatures collaborate to govern, finance and ultimately This report is deep with information and original research that can deliver America’s transportation system. “ help guide any state to the ends they seek.” —Roberta Broeker, Chief Financial Officer, —Joseph Erskine, Deputy Secretary for Finance and Administration, Missouri Department of Transportation Kansas Department of Transportation and NCSL-AASHTO Task Force Co-Chair “As states struggle to secure much-needed transportation funding, “A strong relationship and effective communications between it is important that policy makers and their staffs have a convenient state legislators and DOT executives are critical in making sound resource available to identify alternative transportation funding, transportation policy decisions. This report documents best governance and accountability models from other states around the practices and is a useful guide for legislators and transportation country. This report is that long-sought resource.” professionals.” A JOINT PROJECT OF —Senator Mary Margaret Haugen, Washington —Lee Munnich, Director, Humphrey Institute of Public Affairs, THE NATIONAL CONFERENCE OF STATE LEGISLATURES AND University of Minnesota THE AASHTO CENTER FOR EXCELLENCE IN PROJECT FINANCE Item # 051211TRN ISBN Price: TRANSPORTATION GOVERNANCE AND FINANCE A 50-STATE REVIEW OF STATE LEGISLATURES AND DEPARTMENTS OF TRANSPORTATION By NCSL Authors Jaime Rall Alice Wheet Nicholas J. Farber James B. Reed With Collaboration and Support from the AASHTO Center for Excellence in Project Finance Under the Guidance of the NCSL-AASHTO Joint Project Oversight Committee William T. Pound Peter “Jack” Basso Executive Director Director 7700 East First Place 444 North Capitol Street, N.W., Suite 249 Denver, CO 80230 Washington, D.C. 20001 (303) 364-7700 (202) 624-5818 444 North Capitol Street, N.W., Suite 515 www.transportation-finance.org Washington, D.C. 20001 (202) 624-5400 www.ncsl.org May 2011 The National Conference of State Legislatures is the bipartisan organization that serves the legislators and staffs of the states, commonwealths and territories. NCSL provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues and is an effective and respected advocate for the interests of the states in the American federal system. NCSL has three objectives: • To improve the quality and effectiveness of state legislatures. • To promote policy innovation and communication among state legislatures. • To ensure state legislatures a strong, cohesive voice in the federal system. The Conference operates from offices in Denver, Colorado, and Washington, D.C. Established by the American Association of State Highway and Transportation Officials (AASHTO) and the U.S. Depart- ment of Transportation (USDOT) through Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), the mission of the AASHTO Center for Excellence in Project Finance is to provide support to State Departments of Transportation in the development of finance plans and project oversight tools and to develop and offer training and state-of-the-art finance methods to advance transportation projects and leverage funding. The center provides four primary services: • Professional Education • Research Services • Technical Assistance • Information Dissemination Printed on recycled paper. ©2011 by the National Conference of State Legislatures. All rights reserved. ISBN 978-1-58024-630-9 Transportation Governance and Finance CONTENTS List of Tables and Figures ............................................................................................................................iv Acknowledgments ........................................................................................................................................v Acronyms ....................................................................................................................................................vi Note on Usage .............................................................................................................................................vi Executive Summary ....................................................................................................................................vii 1. Introduction ............................................................................................................................................ 1 2. Participants in Transportation Governance and Finance .......................................................................... 4 3. Legislature-DOT Communication and Collaboration ............................................................................. 8 4. Transportation Governance .................................................................................................................. 10 Legislation ........................................................................................................................................... 10 Drafting and Presenting Legislation.............................................................................................. 10 Lobbying ...................................................................................................................................... 11 Fiscal Notes and Policy Analyses ................................................................................................... 11 Legislative Oversight ........................................................................................................................... 11 Committee Oversight ................................................................................................................... 12 DOT Leadership Appointments ................................................................................................... 14 Review of Administrative Rules and Regulations .......................................................................... 15 Performance Goals ....................................................................................................................... 16 Program Evaluation and Sunset Reviews ...................................................................................... 17 Reporting Requirements .............................................................................................................. 18 Other Tools that Support Legislative Oversight ............................................................................ 19 Resources to Support DOT Compliance with Legislative Oversight Requirements
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