Urban-Rural Initiative Urban-Rural Initiative REPORT REPORT - PowerPoint PPT Presentation

OPEGA REVIEW FINAL FINAL Urban-Rural Initiative Urban-Rural Initiative REPORT REPORT Program Program a repor a report by by the Office of Program Evaluation & Government Accountability July 2007 2007

The Program ―――――――――――――― Urban-Rural Initiative Program (URIP) Urban-Rural Initiative Program (URIP) A portion of MaineDOT’s Highway Fund appropriation is distributed to: •488 municipalities •3 Indian reservations •10 counties Currently, approximately $25,000,000 in URIP Currently, approximately $25,000,000 in URIP funding is distributed each year. funding is distributed each year. OPEGA Final Report: Urban-Rural Initiative Program OPEGA Final Report: Urban-Rura l Initiative Program Slide 2 lide 2

The Program ―― -- ――――――――――― 23 MRSA §1801 The purpose of the Urban-Rural Initiative Program is to provide equitable financial assistance to communities for their use in improving local roads, maintaining state roads in urban compact areas and assisting the State in making capital improvements to State aid minor collector highways. OPEGA Final Report: Urban-Rura OPEGA Final Report: Urban-Rural Initiative Program l Initiative Program Slide 3 lide 3

Audit Purpose ―――――― --- ―――――― OPEGA Sought to Answer the Questions … OPEGA Sought to Answer the Questions … 1) is the funding available to municipalities, counties, and Indian reservations being fairly distributed; 2) are the funds processed and distributed in accordance with statute; and 3) are the funds being utilized in accordance with statute? OPEGA Final Report: Urban-Rura OPEGA Final Report: Urban-Rural Initiative Program l Initiative Program Slide 4 lide 4

Methods ――――――――――――― -- ――― To answer these questions, OPEGA ……. To answer these questions, OPEGA ……. • researched relevant State statutes, history, and processes related to URIP; • interviewed municipal officials and representatives; • reviewed municipal financial statements and road expenditures; and • verified URIP funding calculations. OPEGA Final Report: Urban-Rura OPEGA Final Report: Urban-Rural Initiative Program l Initiative Program Slide 5 lide 5

Background ―――――――――――――― URIP evolved from what was know as the URIP evolved from what was know as the Local Roads Assistance Program (LRAP) Local Roads Assistance Program (LRAP) Changes: •URIP funding guaranteed and indexed •Increased lane mile rates •Shifted focus to capital improvements •Hold harmless provision OPEGA Final Report: Urban-Rura OPEGA Final Report: Urban-Rural Initiative Program l Initiative Program Slide 6 lide 6

Background ―――――――――――――――― Funding levels SFY1993-SFY2008 Funding levels SFY1993-SFY2008 $26 $24 $25.1 $25.2 Funding $ (millions) $22 $22.8 $22.8 $20 $19.3 $19.6 19.2 $18 $16 $14 $12 $10 1993 1996 1999 2002 2005 2007 2008 State Fiscal Year OPEGA Final Report: Urban-Rural Initiative Program OPEGA Final Report: Urban-Rura l Initiative Program Slide 7 lide 7

Background ――――――――――――――― Two components of URIP Two components of URIP Urban C Urban Compact Initiative mpact Initiative Urban Compact Municipality: municipality with greater than 7,500 population, 43 in Maine Urban Compact area: A section of highway where structures are less than 200 feet apart for a distance of 1/4 mile or more Rural Road Initiative Rural Road Initiative OPEGA Final Report: Urban-Rural Initiative Program OPEGA Final Report: Urban-Rura l Initiative Program Slide 8 lide 8

Background ――――――――――――――― What may URIP funds be used for? What may URIP funds be used for? Urban Compact areas: maintenance or improvement of public roads Rural areas: capital improvement projects only OPEGA Final Report: Urban-Rura OPEGA Final Report: Urban-Rural Initiative Program l Initiative Program Slide 9 lide 9

Background ――――――――――――――― How are URIP funds allocated? How are URIP funds allocated? Based on: • Lane miles • Road classifications and location • Responsibilities OPEGA Final Report: Urban-Rura OPEGA Final Report: Urban-Rural Initiative Program l Initiative Program Slide 1 lide 10

Background ―――――――――――――― Urban-Rural Initiative Prog Urban-Rural Initiative Program ram Rates Per Lane Mile* Rates Per Lane Mile* Road Classificatio Ro ad Classification Rur Rural Highw l Highways State Urban Compact H State Urban Compact Highways ghways Summ Summer er Winter Winter 1st two lanes more than two All Lanes lanes St Stat ate Highway e Highway $0.00 $2,500 $1,250 $1,700 St Stat ate Aid e Aid Hig Highwa way y $0.00 $2,500 $1,250 $0.00 State Aid Minor Collect State A d Minor Collector $600 $2,500 $1,250 $0.00 Town To wnwa way y $600 $0.00 $0.00 Se Seaso asonal al T Townway wnway $300 $0.00 $0.00 * These rates are statutory amounts that a recipient is allotted per lane-mile. Actual amounts may vary depending on the actual funding allocated to URIP each year. OPEGA Final Report: Urban-Rura OPEGA Final Report: Urban-Rural Initiative Program l Initiative Program Slide 1 lide 11

Background ――――――――――――――― How are URIP funds distributed? How are URIP funds distributed? • Maine DOT calculates URIP allotment for each entity • Recipients must submit certification • Payments made quarterly, as per statute OPEGA Final Report: Urban-Rura OPEGA Final Report: Urban-Rural Initiative Program l Initiative Program Slide 1 lide 12

Background ―――――――――――――― Distribution of SFY 2006 URIP Allotments Distribution of SFY 2006 URIP Allotments 140 Number of Funding Recipients 120 100 120 Urban 80 Rural 60 108 85 40 60 20 17 5 31 28 16 13 11 7 0 0-5 5-20 20-35 35-50 50-65 65-80 80-100 100-200 200-300 300+ URIP $ Distributed (thousands) OPEGA Final Report: Urban-Rural Initiative Program OPEGA Final Report: Urban-Rura l Initiative Program Slide 1 lide 13

Background ――――――――――――――― How do funding recipients process and How do funding recipients process and utilize URIP funds? utilize URIP funds? • Roads budget supplementation • Expend every year or carry-over • Overall, road expenses typically exceed URIP funding allocations OPEGA Final Report: Urban-Rural Initiative Program OPEGA Final Report: Urban-Rura l Initiative Program Slide 1 lide 14

Conclusions ――――――――――――――― Original Questions Original Questions • Is the funding available to municipalities, counties, and Indian reservations being fairly distributed? Yes. • Are the funds processed and distributed in accordance with statute? Yes. • Are the funds being utilized in accordance with statute? Undetermined; likely in most cases but some risk does exist. OPEGA Final Report: Urban-Rural Initiative Program OPEGA Final Report: Urban-Rura l Initiative Program Slide 1 lide 15

Finding 1 ―――――――――――――――― -- Finding Finding Management Action Management Action Data on actual fund use Beginning July 1, 2008 is not collected. MaineDOT will require Compliance cannot be funding recipients to specifically verified nor provide information program effectiveness regarding how URIP assessed. funding was used in the previous year. OPEGA Final Report: Urban-Rural Initiative Program OPEGA Final Report: Urban-Rura l Initiative Program Slide 1 lide 16

Finding 2 ―――――――――――――――― -- Management Action Management Action Finding Finding Opportunity exists MaineDOT and the Maine to reduce Municipal Association will work administrative together to encourage recipients costs. to accept URIP payments by direct deposit. OPEGA Final Report: Urban-Rural Initiative Program OPEGA Final Report: Urban-Rura l Initiative Program Slide 1 lide 17

Observation ――――――――――――――― -- LD1790/Senate Paper 731 LD1790/Senate Paper 731 A Joint Order directing the Joint Standing Committee on Transportation to study certain Transportation related matters. OPEGA suggests that any additional discussions concerning changes to URIP include considerations of mechanisms to collect data and stress accountability. OPEGA Final Report: Urban-Rura OPEGA Final Report: Urban-Rural Initiative Program l Initiative Program Slide 1 lide 18

Acknowledgements ――――――――――― - • Maine Municipal Association • Municipal Officials • MaineDOT OPEGA Final Report: Urban-Rura OPEGA Final Report: Urban-Rural Initiative Program l Initiative Program Slide 1 lide 19

Questions? OPEGA Final Report: Urban-Rura OPEGA Final Report: Urban-Rural Initiative Program l Initiative Program Slide 2 lide 20