Transportation Governance and Finance: A 50-State Review of State Legislatures and ...

542 Pages·2016·4.98 MB·English

Transportation
Governance and Finance
A 50-State Review of State Legislatures
and Departments of Transportation
November 2016
Acknowledgments
National Cooperative Highway Research Program (NCHRP)
This study was conducted with funding provided through the
Project 20-24
. The NCHRP is supported by annual voluntary contributions from the state departments of transportation
(DOTs). Project 20-24 is intended to fund quick response studies that address specific needs of chief executive officers and other
top managers of these departments. The work was guided by an NCHRP project panel composed of Travis L. Brouwer, Oregon
Department of Transportation; Karen S. Doyle, Maine Department of Transportation; Linda T. Hull, Utah Department of
Transportation; David Kuhn, New Jersey Department of Transportation; Humberto A. Tasaico, North Carolina Department
of Transportation; Lorie Tudor and Gill Rogers, Arkansas State Highway and Transportation Department; and Daniel Yeh,
Wisconsin Department of Transportation. Liaisons to the panel included J. Woody Stanley, Federal Highway Administration;
Douglas Shinkle and Kevin Pula, National Conference of State Legislatures; and Joung H. Lee and Jennifer Brickett, American
Association of State Highway and Transportation Officials (AASHTO). The project was managed by Andrew Lemer, NCHRP
Senior Program Officer.
In addition, this report represents substantial work by more than 200 legislative staff members and DOT personnel in all 50
states and the District of Columbia (see Table 1 on page 10 for a full list of organizations that participated in the project’s survey
research). Without the invaluable survey responses, follow-up information, and review comments from these experts in the
states, the report could not exist. Thanks, too, to the Transportation Research Board’s state representatives, many of whom as-
sisted with the survey research in their respective states, and to the hundreds of state legislators, legislative staff, DOT officials,
and others who contributed to and gave meaningful feedback about the 2011 edition of this report.
Special thanks to author and principal investigator Jaime Rall of J.R. Rall Consulting LLC, Roseland, Indiana.
Disclaimer
This publication relies heavily on reported data, both from the original 2011 edition and the current research. Although consid-
erable efforts were made to verify the accuracy and completeness of the information contained in this report, errors or omissions
may exist.
© 2016 by the American Association of State Highway and Transportation Officials.
All rights reserved. Duplication is a violation of applicable law.
TGF-2-OL | ISBN 978-1-56051-668-2
2 • A 50-State Review of State Legislatures and Departments of Transportation
AASHTO Executive Committee | 2015–2016
President
Paul Trombino, Iowa
Vice President
David Bernhardt, Maine
Secretary-Treasurer
Carlos Braceras, Utah
Executive Director
Bud Wright, Washington, DC
Regional Representatives
Region I
Leslie Richards, Pennsylvania
Pete Rahn, Maryland
Region II
Paul Mattox, West Virginia
Charles Kilpatrick, Virginia
Region III
Charles A. Zelle, Minnesota
Randall S. Blankenhorn, Illinois
Region IV
Brian Ness, Idaho
Carlos Braceras, Utah
Immediate Past President
Vacant
Transportation Governance and Finance • 3
AASHTO Standing Committee on
Finance and Administration | 2016
Chair Kansas Oregon
John C. Schroer, Tennessee Chris Herrick Tracy Wroblewski
Vice Chair Kentucky Pennsylvania
Mike Patterson, Oklahoma Asa Swan James Ritzman
Secretary Louisiana South Carolina
Lee A. Wilkinson, Iowa Barry Keeling Brian Keys
Don Johnson
Liaison South Dakota
Maine Ben Orsbon
Joung Lee, AASHTO
Karen Doyle
Tennessee
Maryland John Schroer
Members
Betty Conners Joseph Galbato
Alabama
Massachusetts Texas
Bill Flowers
William Betts Brian Ragland
Arizona James Bass
Michigan
John Bogert,
Laura Mester Utah
Kristine Ward
Myron Frierson Becky Bradshaw
Arkansas Trudy Schutte
Vermont
Lorie Tudor
Minnesota Faith Brown
Scott Bennett
Tracy Hatch Leonard LeBlanc
California
Mississippi Virginia
Norma Ortega
Byron Flood John Lawson
Colorado Janet Lee
Washington State
Heidi Humphreys Lisa Hancock
Amy Arnis
Maria Sobota
Missouri
West Virginia
Connecticut Melissa Black
Keith Chapman
Pamela Sucato Roberta Broeker
Robert Watson
Robert Card
Montana Robert Pennington
Delaware Lawrence Flynn
Wisconsin
Huhg Curran
Nebraska Daniel Yeh
Lanie Thornton
Michael Keays Paul Hammer
District of Columbia
Nevada Wyoming
Eric Stults
Robert Nellis David Stearns
Kathryn Valentine
Rudy Malfabon
Associate Members
Florida
New Hampshire
Lisa Saliba Alberta Transportation
Carol Macuch
Rachel Cone Dave Bentley
Robin Naitove New Jersey
Federal Highway Administration
Gary Brune
Georgia Brian Bezio
Angela Whitworth New Mexico
Los Angeles County Metropolitan
Marcos Trujillo
Hawaii Transportation Authority
Gerald Dang New York David Yale
Ronald Epstein
Idaho New York State Bridge Authority
David Tolman North Carolina Brian Bushek
David Tyeryar
Illinois Saskatchewan Ministry of
Jeff Heck North Dakota Highways and Infrastructure
Norlyn Schmidt David Stearns
Indiana
Daniel Brassard Ohio
Mark Ratliff Matt Downs
Iowa Oklahoma
Lee Wilkinson Mike Patterson
Russell Hulin
4 • A 50-State Review of State Legislatures and Departments of Transportation
AASHTO Subcommittee on
Transportation Finance Policy | 2016
Chair Iowa Ohio
Lorie Tudor, Arkansas Dan Franklin Matt Downs
Richard Winning
Vice Chair Kansas
Laura Mester, Michigan Chris Herrick Oklahoma
Chelley Hilmes
Secretary Kentucky
Russell Hulin
Ron Rigney
James M. Bass, Texas
Oregon
Louisiana
Liaison
John Baker
Barry Keeling
Jennifer Brickett, AASHTO Travis Brouwer
Don Johnson
Pennsylvania
Maine
Members James Ritzman
Karen Doyle
Alabama South Carolina
Maryland
Bill Flowers Brian Keys
David Fleming
Alaska Steven Watson South Dakota
Peter Christensen Ben Orsbon
Massachusetts
Arizona Beth Pellegrini Tennessee
Kristine Ward Kostandin Theodhori Jennifer Herstek
Lisa Danka William Betts Joseph Galbato
Arkansas Michigan Texas
Gill Rogers Laura Mester James Bass
Jared Wiley Myron Frierson
Utah
Jessie Jones Trudy Schutte
Becky Bradshaw
Kevin Thornton
Minnesota Linda Hull
Lorie Tudor
Sergius Phillips
Scott Bennett Vermont
Tracy Hatch
Leonard LeBlanc
California
Mississippi
Norma Ortega Virginia
Byron Flood
John Lawson
Colorado Janet Lee
Laura Farmer
Ron Papsdorf Lisa Hancock
Washington State
Connecticut Missouri
Amy Arnis
Patricia Hustus Roberta Broeker
Doug Vaughn
Robert Card
Montana
West Virginia
Delaware James Skinner
Karen Zamow
Brian Motyl Lynn Zanto
Robert Watson
District of Columbia Nebraska Robert Pennington
Eric Stults Michael Keays
Wisconsin
Florida Nevada Daniel Yeh
Lisa Saliba David Olsen
Wyoming
Rachel Cone Felicia Denney
John Davis
Robin Naitove Robert Nellis
Associate Members
Georgia New Mexico
Angela Whitworth Marcos Trujillo Federal Highway Administration
Brian Bezio
Hawaii New York
Clarita Hironaka Ronald Epstein Los Angeles County Metropolitan
Transportation Authority
Idaho North Carolina
David Yale
David Tolman Calvin Leggett
Kahlieh Honish
Humberto Tasaico
Illinois
Joanne Woodworth North Dakota
Roxy Heck Norlyn Schmidt
Robert Fode
Indiana
Steve Salwei
Daniel Brassard
Transportation Governance and Finance • 5
Notes on Usage
“Legislatures” and “DOTs” are used throughout as general terms for these institutions across the states. In the tables and state
profiles, the capitalized, proper name is used for the legislature or department of transportation in a particular state.
2010 Style Guide
All statutory citations are formatted according to the National Conference of State Legislatures’ , except those
for Arkansas, Georgia, and Illinois, which are cited as requested by survey respondents.
“Fiscal year” (abbreviated FY) refers to the fiscal year of the specific state being described. State fiscal years begin on July 1
except in Alabama (Oct. 1), Michigan (Oct. 1), New York (April 1), Texas (Sept. 1), and the District of Columbia (Oct. 1). The
fiscal year is identified by the year in which it ends.
Abbreviations have mostly been avoided. Exceptions include DMV (division [or department] of motor vehicles), DOT (depart-
ment of transportation), FY (fiscal year), GARVEE (grant anticipation revenue vehicle), HOT lane (high-occupancy toll lane),
MPO (metropolitan planning organization), STIP (statewide [or state] transportation improvement program), TIP (transporta-
tion improvement program), and the preferred acronym for each state’s department of transportation.
All data is assumed to be current as of July 2016 unless otherwise noted.
6 • A 50-State Review of State Legislatures and Departments of Transportation
Table of Contents
1 | Introduction. ........................................................................................................ 9
Project Overview. ....................................................................................................... 9
Methodology ........................................................................................................... 9
Report Organization. .................................................................................................. 12
2 | Participants in State Transportation Governance and Finance. .................................................... 13
State Legislatures ...................................................................................................... 13
State Departments of Transportation .................................................................................... 15
Other Stakeholders. .................................................................................................... 18
3 | Communication and Collaboration Between State Legislatures and DOTs. ....................................... 31
4 | State Transportation Governance .................................................................................. 34
Laws and Legislation ................................................................................................... 34
Legislative Proposals. .................................................................................................. 34
Advocacy and Lobbying. ............................................................................................... 35
Fiscal Notes and Policy Impact Statements for Legislative Use. ............................................................ 35
Legislative Oversight. .................................................................................................. 36
Legislative Committees ................................................................................................ 36
Leadership Appointments and Removals ................................................................................ 41
Legislative Review of Administrative Rules and Regulations. ............................................................. 44
Legislative Audits and Sunset Reviews .................................................................................. 45
Reporting Requirements ................................................................................................46
Legislative Roles in DOT Performance Management. .................................................................... 47
Other Legislative Oversight Mechanisms. ............................................................................... 47
Resources Provided to DOTs to Support Compliance with Oversight Requirements . ....................................... 47
5 | State Transportation Funding and Finance ...........................................................................48
Budgeting and Appropriations .......................................................................................... 52
State Budget Cycles and Processes ....................................................................................... 52
Allocation of Federal Revenues to State DOTs. .......................................................................... 53
Allocation of State Revenues to State DOTs ............................................................................. 54
Planning and Projects .................................................................................................. 56
State Revenue Sources. ................................................................................................. 57
Revenue Sources for Transportation Uses ................................................................................ 57
Restrictions on State Transportation Revenues and Funds. ................................................................ 66
Revenue Sources Prohibited in State Law. ............................................................................... 69
State Finance Mechanisms. ............................................................................................. 69
Finance Mechanisms for Transportation Uses. ........................................................................... 69
Restrictions on State Transportation Finance Mechanisms. ............................................................... 75
Finance Mechanisms Prohibited in State Law. ........................................................................... 75
Other State Funding and Finance Issues ................................................................................. 75
Retention and Expenditure of Excess Funds ............................................................................. 76
Movement of Funds Between Projects. .................................................................................. 76
Legislative Actions to Control DOT Costs .............................................................................. 76
State Involvement in Local Transportation Funding ...................................................................... 77
Allocation of State Transportation Revenues to Local Entities. ............................................................ 77
Authorization of Local Revenue Sources in State Law .................................................................... 78
6 | State Profiles........................................................................................................79
Transportation Governance and Finance • 7
References. .......................................................................................................... 537
Participants in State Transportation Governance and Finance ............................................................ 537
Transportation System Statistics ....................................................................................... 537
Transportation Governance. ........................................................................................... 538
Transportation Funding and Finance. .................................................................................. 539
Tables
Table 1. Responding Organizations for the 2016 Survey Research. ........................................................ 10
Table 2. Names and Characteristics of State Legislatures. ................................................................. 13
Table 3. Categorization of States by Levels of Legislative Professionalization ............................................. 15
Table 4. Names and Characteristics of State DOTs. ........................................................................ 16
Table 5. Sizes of State DOTs in Full-Time Equivalents (FTEs). .......................................................... 18
Table 6. Major Stakeholders in Transportation Governance and Finance ...................................................19
Table 7. State Transportation Officials that Serve on the Governor’s Cabinet. ............................................. 20
Table 8. State Transportation Boards, Councils, and Commissions. ....................................................... 22
Table 9. Names and Types of Other State-Level Transportation Entities. ................................................. 23
Table 10. O ther State-Level Transportation Entities for Which a Secretary, Director, or
Commissioner of Transportation Serves as a Member or on the Board Ex Officio. .............................. 26
Table 11. State Agencies that Perform DMV and Highway Patrol Functions. ............................................. 27
Table 12. S election of Respondents’ Views Concerning Communication and Collaboration between
State Legislatures and DOTs ................................................................................... 31
Table 13. State Legislative Standing Committees with Jurisdiction over Transportation-Related Issues .................. 36
Table 14. Appointment of DOT Leaders . ................................................................................. 41
Table 15. Appointments to State Transportation Boards, Councils, and Commissions . ................................... 43
Table 16. Legislative Review of Administrative Rules ..................................................................... 45
Table 17. State DOTs That Are Subject to Legislative Audits or Sunset Reviews .......................................... 46
Table 18. Selection of Respondents’ Views Concerning State Approaches to Transportation Funding and Finance ....... 49
Table 19. State Budget Cycles . ............................................................................................ 53
Table 20. State Legislative Roles in Allocating Federal Transportation Revenues to State DOTs ......................... 54
Table 21. State Legislative Roles in Allocating State Transportation Revenues to State DOTs. ........................... 55
Table 22. Range of Legislative Roles in Transportation Planning and Capital Project Selection ........................... 57
Table 23. Revenue Sources Currently Used by States for Roads and Bridges. .............................................. 58
Table 24. State Fuel Tax Models. .......................................................................................... 64
Table 25. Dedications of State Fuel Taxes in State Law. .................................................................... 67
Table 26. Finance Mechanisms Currently Used by States for Roads and Bridges .......................................... 70
Table 27. States That Do Not Currently Use Bonds for Transportation Purposes. ......................................... 75
8 • A 50-State Review of State Legislatures and Departments of Transportation
1 | Introduction
In the United States, state governments bear much of the responsibility for the transportation systems within their borders.
States own and maintain transportation assets, plan and build new infrastructure, manage billions of Federal and state dollars
each year, and collaborate with and support local governments. In recent years, states have faced greater challenges in meeting
these obligations than ever before. Confronted with aging infrastructure, constrained resources, changing demographics, and
growing demand, states have developed a remarkable array of approaches to providing transportation options that get people and
goods to their destinations safely and effectively.
This report is intended to serve as a comprehensive, up-to-date reference tool for state governments, as well as for other interest-
ed stakeholders, about how all 50 states and the District of Columbia govern and pay for their transportation systems. It ad-
dresses the institutional context for state-level transportation decision making, and explores how state legislatures and executive
departments of transportation (DOTs)—the most active players in state-level transportation governance and finance—work
together, and balance one another, in the development of transportation programs and policies. It also provides extensive in-
formation about state transportation funding and finance, including how state transportation budgets and plans are developed,
what revenue sources and finance mechanisms are currently in use, and the roles states play in local transportation funding. By
providing a nationwide comparative analysis, the report illustrates the rich diversity of states’ efforts to serve the public good,
despite challenging circumstances and within complex intergovernmental arrangements.
Project Overview
2011 report of the same name
This report is an updated and revised edition of the groundbreaking , which was published by
AASHTO and the National Conference of State Legislatures. Since 2011, the legislative and political environment for trans-
portation governance and finance has evolved nationally and in the states. New Federal laws have been enacted, and many states
have made changes to how their transportation systems are managed and paid for. This edition integrates these developments,
and also expands on the original effort by adding a number of topics of recent interest in the states, including DOTs’ relation-
ships with other state entities and the authorization of local transportation revenues in state law. Further, substantial efforts
have been made to clarify and enhance the information provided—for example, by identifying the specific transportation modes
for which each revenue source or finance mechanism is used and by adding extensive statutory citations throughout the state
profiles.
Methodology
To produce this edition, the material from the 2011 report was first thoroughly updated to reflect current law or practice and
edited for clarity and comparability across states. The edited information was integrated into state-specific surveys, one on state
DOTs and legislatures and one on transportation funding and finance, and e-mailed to DOT personnel and legislative staff in
all 50 states and the District of Columbia to be confirmed or corrected. Each survey also included open-ended questions on new
topics of interest and a confidential section on recommendations and lessons learned. Responses were received for both surveys
from all 51 jurisdictions, for a total of 132 completed surveys (see Table 1 for a full list of participating organizations). The survey
information was then reviewed, compiled, analyzed, and re-edited into the draft state profiles, which were sent back to the sur-
vey respondents for their review. This multi-stage process offered several opportunities for state experts to improve the accuracy
and presentation of their states’ information in the final report.
Transportation Governance and Finance • 9
Table 1. Responding Organizations for the 2016 Survey Research
State Responding Organizations
Alabama Legislative Reference Service, Alabama Legislature
Alabama Department of Transportation
Alaska Division of Legislative Finance, Alaska Legislature
Legislative Research Services, Alaska Legislature
Alaska Department of Transportation and Public Facilities
Arizona Joint Legislative Budget Committee, Arizona Legislature
House Research Staff, Arizona Legislature
Arkansas Bureau of Legislative Research, Arkansas General Assembly
Arkansas State Highway and Transportation Department
Arkansas Governor’s Office [supplemental details only]
California Legislative Analyst’s Office, California Legislature
Colorado Colorado Legislative Council, Colorado General Assembly
Colorado Department of Transportation
Connecticut Office of Fiscal Analysis, Connecticut General Assembly
Office of Legislative Research, Connecticut General Assembly
Connecticut Department of Transportation
Delaware Office of the Controller General, Delaware General Assembly
Florida Florida Department of Transportation
Georgia House Budget and Research Office, Georgia General Assembly
Georgia Department of Transportation
Hawaii Legislative Reference Bureau, Hawaii Legislature
House Committee on Finance, Hawaii Legislature
Hawaii Department of Transportation
Idaho Legislative Services Office, Idaho Legislature
Idaho Transportation Department
Illinois Legislative Research Unit, Illinois General Assembly
Illinois Department of Transportation
Indiana Legislative Services Agency, Indiana General Assembly
Indiana Department of Transportation
Iowa Legislative Services Agency, Iowa General Assembly
Kansas Kansas Legislative Research Department, Kansas Legislature
Kansas Department of Transportation
Kentucky Legislative Research Commission, Kentucky General Assembly
Kentucky Transportation Cabinet
Louisiana Senate Legislative Services, Louisiana Legislature
Louisiana Department of Transportation and Development
Maine Office of Fiscal and Program Review, Maine Legislature
Office of Policy and Legal Analysis, Maine Legislature
Maine Department of Transportation
Maryland Department of Legislative Services, Maryland General Assembly
Maryland Department of Transportation
Massachusetts Massachusetts Department of Transportation
Michigan House Fiscal Agency, Michigan Legislature
Michigan Department of Transportation
Minnesota House Fiscal Analysis Department, Minnesota Legislature
Minnesota Department of Transportation
Mississippi Legislative Budget Office, Mississippi Legislature
Mississippi Department of Transportation
10 • A 50-State Review of State Legislatures and Departments of Transportation