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Target Funding for Substate Transportation Investment Decisions

Minnesota developed the concept of substate area transportation partnerships (ATPs) under the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA). The ATPs are responsible for integrating regional priority projects into a unified State Transportation Improvement Program. The ATPs work within the constraint of a target funding level that estimates federal funding expected to be available to areas within the state. Controversy has developed about the methodology used to develop the target funding formula. In 1995, the Minnesota Department of Transportation (MnDOT) formed a work team to reevaluate the target funding formula. In developing alternatives, the work team reviewed methodologies proposed by other groups and researched a wide range of possible measures that could be used. The team evaluated the pros and cons of the measures before selecting 13 measures for detailed study. Measures that were considered were grouped into the three categories of system health, system size, and contributions. The team proposed five alternative scenarios, in addition to an update of the existing scenario. The scenarios were presented to MnDOT and its external partners for review and comment. The lessons learned about the process and the measures that were most acceptable for inclusion in the formula for determining target funding are described.