Find innovative funding resources to help finance management and operations (M&O) strategies and ITS.
The experience of several agencies with innovative funding.
Montgomery County,Maryland,United States; Hampton Roads,Virginia,United States; Seattle,Washington,United States
Experienced ITS professionals offer the following strategies for discovering innovative funding resources:
- Institute land development impact fees to help fund management and operations (M&O) strategies and ITS. An innovative funding strategy is to use "impact fees" levied on land developers to fund operations equipment, such as monitoring cameras and signal timing improvements. The practice of requiring developers to fund transportation improvements as a way to mitigate the transportation impacts of their projects is well established, but relying on this as a source of M&O improvements is relatively new. This funding opportunity may also prompt local governments to more thoroughly identify M&O needs so that individual funding sources can be used together to support an integrated operations approach. This is critical, since operations must typically be applied on a system-wide rather than localized basis.
- Replace select discretionary transportation funds with impact fees for large developments. In Montgomery County, MD, an impact fee for large developments has replaced the use of some discretionary transportation funds. The county's public works department is using these impact fees to fund operations equipment, including dynamic message signs and detection equipment. In one instance, a major development funded a dynamic message sign that indicates when transit parking facilities at central rail stations are full, encouraging drivers to use parking lots at stations located further from the region's core. This new funding source has also helped to promote coordination between planning and operations.
- Demonstrate how transportation management strategies will mitigate development-related transportation impacts before requiring developer-funded improvements. Developer concessions can provide an important source of revenue and encourage more detailed planning for M&O programs. In order to require developer-funded improvements, local governments typically must demonstrate how the management strategies can mitigate transportation impacts, such as improvements in traffic flow on a particular corridor.
- Use a portion of a roadway's capital investment funds to help finance management and operations (M&O) strategies and ITS. One approach to fund certain operations strategies and ITS is to allocate part of a project's initial capital investment for M&O strategies that support the regional transportation vision and goals and/or enhance the project's effectiveness (e.g., ITS equipment that enhances corridor management activities). The Hampton Roads, VA region incorporated ITS into the metropolitan planning organization's (MPO) project selection process for the regional Surface Transportation Program and the CMAQ funding program. ITS projects were scored for their capacity to support planning objectives. Their experience suggests the following lesson:
- Fund ITS plans and projects using capital investment funds. In Hampton Roads, several ITS plans and projects have been funded by using capital investment funds, including a regional roadway information system, a centralized traveler information system, signal system upgrades, and implementation of the local Smart Traffic Center. They have also included ITS as a distinct element of the MPO's long-range plan. The current draft of the region's 2026 Plan includes long-range investments for future ITS projects.
- Leverage funding constraints to enhance the focus on management and operations (M&O) solutions in the transportation investment decision-making process. The Washington State DOT had to address a severe disparity between transportation needs and revenues in its 20-year transportation plan. The plan prioritized investment choices as follows:
- Maintenance, traffic operations, and preservation activities are top priorities and are first in line for available revenues.
- Highway safety, environmental retrofit, economic initiatives, and a Puget Sound core system of high occupancy vehicle (HOV) lanes are high priorities and are second in line for available revenues.
- Revenues remaining after the above priorities are addressed go to other highway mobility improvements.
Author: Ang-Olson, Jeffrey (ICF Consulting), Jocelyn Bauer (SAIC), Michael Grant (ICF Consulting), Jonathon Kass (ICF Consulting), John Mason (SAIC), Sergio Ostria (ICF Consulting)
Published By: USDOT
Source Date: 11/30/2004
EDL Number: 14071
Other Reference Number: FHWA-HOP-05-016URL: http://www.ops.fhwa.dot.gov/publications/lpo_ref_guide/index.htm
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Lesson of the Month for September, 2006 !
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