MPO Policy and Procedures Manual - Indianapolis Metropolitan ...

5. Funding Programs
At the most basic level of identification of transportation improvements, a given municipal or
county capital improvement program will identify a portion of those improvements for potential
federal funding (see project selection process in the Indianapolis Regional Transportation
Improvement Program - IRTIP section of this document). Typically those projects will be major
road reconstruction, added travel lanes and intersection projects, as well as bridge
reconstruction/replacement projects.
As required by federal regulations, all transportation improvements located in the Indianapolis
MPA that use federal funds must appear in the IRTIP. Additionally, it is a prerequisite that all
roadway projects that add capacity to the system (added travel lanes or new roadways) must be
in the Long-Range Transportation Plan before they may be programmed in the IRTIP. Note that
most transportation improvements use an 80% federal and 20% local funding formula.
The IRTIP also identifies the local matching funds provided by the implementing agency that
has jurisdiction over the geographic area in which the specific improvement resides. INDOT
implements projects on Interstates, U. S. Routes and, State Roads, and thus provides State
funds as the 20% local match. Each county, city, and town provides local funds as match for the
transportation improvements that they implement. There also may be private sector funding that
supplements State and locally implemented projects. The IRTIP also includes projects and
programs from quasi-public organizations, such as IndyGo and the Indianapolis Airport Authority
(IAA) (although IAA projects are included for information purposes only).
Federal funding is the primary funding source for plans and transportation improvements and is
procured primarily by the Federal Highway Trust Fund, which is supplemented by general funds.
Current financing provisions began in 1991 with the enactment of the Intermodal Surface
Transportation Efficiency Act (ISTEA), and continued with the 1998 reauthorizing legislation, the
Transportation Equity Act for the 21 st Century (TEA-21) and the The Safe, Accountable,
Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), the 2005
reauthorizing legislation. Note that with a few exceptions federal transportation funds are sent
directly to and administered by INDOT, who then allocates the money to urban and rural areas.
Most transit funds for urban areas are sent directly from the FTA to the transit operator.
Federal funds are made available to the Indianapolis MPO and its planning partners through a
specific process:
• Authorizing Legislation: Congress enacts legislation that establishes or continues the
existing operation of a federal program or agency, including the amount of money it will
have to spend. Congress re-authorizes federal transportation programs (known as the
Federal-aid Highway Program) over a multi-year period. The amount authorized,
however, is not always the amount that ends up being available to spend.
• Appropriations: Each year, Congress decides on the federal budget for the next fiscal
year. This process is known as the appropriation process. The amount appropriated to a
federal program is often less than the amount authorized for a given year and is the
actual amount available to federal agencies to spend.
• Apportionment: The distribution of funds among states using a formula provided in law
is called an apportionment. An apportionment is usually made on the first day of the
29