Transportation Improvement Program (TIP)

According to the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), the Metropolitan Planning Organization (MPO), in cooperation with the State and affected transit operators, shall develop a Transportation Improvement Program (TIP) for the area for which the organization is designated. In developing the program, the MPO shall provide citizens, affected public agencies, representatives of transportation agency employees, other affected employee representatives, private providers of transportation, and other interested parties with a reasonable opportunity to comment on the proposed program. The program shall be updated at least once every 4 years and shall be approved by the MPO and the Governor.

"The Transportation Improvement Program shall include the following:

(A) A priority list of projects and project segments to be carried out within each 4-year period after the initial adoption of the transportation improvement program.
(B) A financial plan that demonstrates how the transportation improvement program can be implemented, indicates resources from public and private sources that are reasonably expected to be made available to carry out the plan, and recommends any innovative financing techniques to finance needed projects and programs, including value capture, tolls, and congestion pricing.

A transportation improvement program for a metropolitan area shall include projects within the area which are proposed for funding under the Surface Transportation Program Title of the ISTEA legislation and the Federal Transit Act and which are consistent with the Long Range Plan developed for the area."

	Amendments approved May 12, 2008
	Entire FY 2008-2011 Transportation Improvement Program (TIP) Amended October 8, 2007 and reflects Total Project Cost (TOC)
	FY 2008-2011 Transportation Improvement Program (TIP) as approved on February 12, 2007

Federal Funds Obligation Report:

Funding for projects is programmed or reserved for a project until they are "obligated". Obligation is a way of ensuring that actual cash is available to pay for project expenditures. Obligation of funds occurs on a project phase basis (i.e. design, right of way or construction).  Key activities under each phase will trigger obligation of funds.  Typically these are critical points at which commitments are made, but expenditures have yet to start.  Such items as advertisement of consultant or construction contracts and preparing offers for property acquisition are actions which will obligate funds.

Before an agency can obligate funds, it must have approval to do so.  In the case of highway and streets projects, the authority to approve the obligation of funds is passed from the Federal Highway Administration (FHWA) on to the Texas Department of Transportation (TxDOT).  The TxDOT has specific processes that must be followed for an agency to get to a point in which funds can be obligated.  These vary depending on the program, but generally include submitting a "project authorization request" and/or entering into an Agreement with TxDOT.  For transit related projects, the lead agency for the project must transmit specific information directly to the Federal Transit Authority (FTA).

Once an agency has authorization to proceed with a project, it can obligate funds.  Every federal program will have specific time limits in which funds must be obligated. Typically these are by the end of a federal or state fiscal year (September 30th and August 30^th, respectively). If funds are not obligated by those deadlines, those funds are withdrawn from the project. FTA projects have a longer window of opportunity, typically three years from the time the grant is approved.

Federal funding is typically transferred to an agency on a reimbursement basis.  Therefore, the agency must ensure it has adequate cash flows to cover planned project expenditures. Typically once expenditures are incurred, the agency can request reimbursement for those costs.  If the agency is required to provide matching monies to the federal funds, those must also be expended. Once the project is complete, the lead agency may have to conduct an audit to ensure funds were spent in accordance with the grant or funding program guidelines.

This document was developed by CAMPO for informational purposes and is not warranted for any other use. The information contained in the document was provided to CAMPO by transportation providers in the CAMPO region. No warranty is made by CAMPO regarding the accuracy or completeness of the information provided.

Federal Funds Obligated FY 2007(645 KB)