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From page 25... ... 25 Sources and Uses: This chapter provides background information on both federal and state revenue sources and expenditures in order to help TAM professionals understand where funds for transportation come from and how they are typically used within an agency. Steps for identifying and documenting the sources and uses of agency funding are included in this chapter to ensure practitioners have a solid framework for developing the financial plan for asset management. Read the entire page →
From page 26... ... 26 A Guide to Developing Financial Plans and Performance Measures for Transportation Asset Management Private, for-profit companies in the U.S. generate income statements that generally group revenues in the upper portion of the statement and expenditures in the lower portion. Read the entire page →
From page 27... ... Transportation Funding Sources and Uses 27 depending on the audience, the time horizon, or the regulatory environment. A governor, for example, may want to see two sources in the financial plan: federal funds and state funds. Read the entire page →
From page 28... ... 28 A Guide to Developing Financial Plans and Performance Measures for Transportation Asset Management tax; taxes on tires, trucks, and trailers; and interest credited to the account. A breakdown of these revenue sources for fiscal year 2013 is shown in Figure 3-2 (Joint Committee on Taxation 2015) Read the entire page →
From page 29... ... Transportation Funding Sources and Uses 29 and bridges, tolls from ferries, oversized/overweight truck permits, overweight truck fines, outdoor advertising/junk yard sign permits, right-of-way usage permits, other permit fees, bonds, unclaimed property funds, state general funds, state budget surplus funds, special fees such as development-impact fees, one-time appropriations or income sources unique to the state and interagency transfers from other state agencies such as the Highway Safety Commissions, Louisiana's Governor's Office of Homeland Security & Emergency Preparedness (GOHSEP) , and the Federal Emergency Management Agency (FEMA) Read the entire page →
From page 30... ... 30 A Guide to Developing Financial Plans and Performance Measures for Transportation Asset Management In addition, a few states, such as Colorado and Louisiana, have implemented advanced financial management systems that enable these states to implement new cash management procedures that allow for construction of multiyear projects based on year of expenditure, rather than needing the full amount of a project before the construction could begin. CDOT's experience with improving financial management is described in their Risk-Based Asset Management Plan (Cambridge Systematics Inc. Read the entire page →
From page 31... ... Transportation Funding Sources and Uses 31 Other Funds Besides motor fuel taxes, registration fees, tolls, and bond proceeds as discussed above, agencies may have at their disposal one or more of the following: • Sales taxes that may include general sales tax, automobile and accessories sales tax, or lodging and car rental surcharges, • Special fees such as development-impact fees, • One-time appropriations or income sources unique to the state, • Toll credits that accumulate when federal-aid roads are funded without federal match and are commonly used to help cover local matching requirements on other Federal-Aid Highways, and • Oversize-overweight, access, and other permit fees. Uses FHWA states that "uses represent the amounts an agency projects it will spend (purpose and amount) Read the entire page →
From page 32... ... 32 A Guide to Developing Financial Plans and Performance Measures for Transportation Asset Management • Did the staff costs -- design, project management/delivery, and administrative -- get reflected in the true cost of the resurfacing of the pavement? • Had the project been completed by DOT maintenance crews rather than contractors, would those costs have been similarly captured as a cost of the pavement resurfacing? Read the entire page →
From page 33... ... Transportation Funding Sources and Uses 33 Fixed Versus Variable Costs Another important financial accounting concept concerns the treatment of fixed and variable costs. "What does it cost just to turn the lights on at the DOT? Read the entire page →
From page 34... ... 34 A Guide to Developing Financial Plans and Performance Measures for Transportation Asset Management Equipped with an understanding of how the agency tracks and reports sources and uses, the TAM professional can decide which sources and uses belong in the financial plan and how to best group or categorize them. The TAM professional must decide whether to include all NHS assets or only pavement and bridges. Read the entire page →
From page 35... ... Transportation Funding Sources and Uses 35 in a financial plan. These steps offer guidance on sources and uses content (what to include in your financial plan) Read the entire page →
From page 36... ... 36 A Guide to Developing Financial Plans and Performance Measures for Transportation Asset Management Figure 3-5. California TAMP -- summary of funding from federal sources (Caltrans 2018) Read the entire page →
From page 37... ... Transportation Funding Sources and Uses 37 price-based fuel excise taxes and the road maintenance and rehabilitation account (RMRA) are sources specific to Caltrans. Read the entire page →
From page 38... ... 38 A Guide to Developing Financial Plans and Performance Measures for Transportation Asset Management Figure 3-8. California TAMP -- summary of Caltrans planned commitments (Caltrans 2018) Read the entire page →
From page 39... ... Transportation Funding Sources and Uses 39 Figure 3-9. Colorado DOT source and use identification within budgetary process (CDOT Transportation Commission 2012) Read the entire page →
From page 40... ... 40 A Guide to Developing Financial Plans and Performance Measures for Transportation Asset Management in three year segments -- the year that just ended, the current year, and the year ahead. Select one of these years, although likely the current year may be the most logical, and see if together each row can be populated with actual or budgeted revenues and expenditures. Read the entire page →

From page 25...

... 25 Sources and Uses: This chapter provides background information on both federal and state revenue sources and expenditures in order to help TAM professionals understand where funds for transportation come from and how they are typically used within an agency. Steps for identifying and documenting the sources and uses of agency funding are included in this chapter to ensure practitioners have a solid framework for developing the financial plan for asset management.