Federal-Aid Highway Program Federal Fiscal Year 2003 Report Arizona Department of Transportation Financial Management Services Office of Resource Administration FEDERAL-AID HIGHWAY PROGRAM Introduction This document is intended to give an overview of the Federal-aid Program and its impacts on Arizona. There are four major sections in the report: (1) Overview of the Federal-aid Program; (2) Arizona Federal funding highlights for fiscal year 2002-2003; (3) Federal-aid Highway Program Characteristics; and (4) Federal-aid Highway Program Descriptions. The first section gives a general overview of how the Federal-aid Program is financed, the authorization process and a discussion of the apportionment, allocation and obligation authority processes. The second section deals with Arizona Federal funding highlights for fiscal year 2002-2003. The last two sections are devoted to characteristics of the core programs, including eligibility, limitations, apportionment formulas and descriptions of the funding categories. • Program Overview Page 2 - 4 • Federal Funding for Arizona - FY 2002-2003 Status Page 5 - 11 • Federal-aid Highway Program Characteristics Page 12 - 14 • Federal-aid Highway Program Descriptions Page 15 - 20 PAGE 1 THE FED ERAL-AID HIGHWAY PROGRAM Program Overview The Federal-aid Highway Program is financed from the proceeds of motor fuel and other highway related excise taxes deposited in the Federal Highway Trust Fund (HTF). The Federal-aid Highway Program is a Federally assisted, state administered program, which distributes Federal funds to the states for the construction and improvement of urban and rural highway systems. On Federal-aid highway projects, a state (or local entity qualified for certification acceptance through the state) develops the plans, lets the contracts, and supervises the construction. The highways remain under the administrative control of the state or local government responsible for their operation and maintenance. Using revenues in the Highway Account of the Highway Trust Fund, the Federal Highway Administration (FHWA) reimburses states for expenditures related to approved highway projects. The FHWA distributes these revenues to states based on apportionment and allocation criteria. Authorization is the process by which Congress authorizes the expenditure of Federal revenues on Federal programs. For the program, authorization has been, and continues to be on a multi-year basis. In recent years the authorization has been for a six-year period. The most recent Highway Transportation Act, Transportation Equity Act for the 21st Century (TEA-21), authorized funding for six years, beginning in 1998. For each Federal fiscal year, the FHWA apportions the authorized funding among the states according to formulas that are established in authorizing statutes. The distribution of Federal funds that do not have a statutory formula is called an “allocation” rather than an “apportionment”. Current law requires that the cash balance of the Highway Account of the HTF, plus projected revenues for the next two years, must be sufficient to repay all unpaid obligations before any additional apportionments of revenues can be made from the HTF. As a result, and unlike most Federal programs, the flow of Federal funding to states for highway projects does not depend on timely appropriation of revenues by Congress as funding is provided through trust-funded contract authority rather than appropriated budget authority. PAGE 2 THE FED ERAL-AID HIGHWAY PROGRAM Distribution of Obligation Authority The obligation limitation is the amount of authorized funding that Congress allows states to obligate in an individual year. The process of determining the annual obligation limitation begins when Congress establishes annual domestic discretionary spending caps - the amount of Federal dollars that can be spent on all domestic, non-entitlement programs in a given year. Once budget caps are determined, Congress distributes spending levels across different program areas, and a targeted level of outlays for highway spending is determined. Congress then establishes the amount of highway funding that can be obligated in the given year. This level often is below the authorized annual level, and serves as a limit on the total obligation in that particular year. Once Congress establishes an overall obligation limitation, the FHWA distributes Obligation Authority to states proportionately to each state’s share of apportioned and allocated revenues. The actual ratio of Obligation Authority to apportionments and allocations may vary from state to state because some Federal-aid programs are exempt from the obligation limitation. A state’s Obligation Authority (unlike its apportionments and allocations of authorized funding) must be used before the end of the fiscal year for which it is made available; if not, it will be distributed to other states. The reallocation of Obligation Authority is referred to as the August Redistribution. PAGE 3 FEDERAL AID FORMULA OBLIGATION AUTHORITY RATIO 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 92 93 94 95 96 97 98 99 FEDERAL FISCAL YEAR Excludes Minimum Guarantee and High Priority Projects 00 01 02 03 THE FED ERAL-AID HIGHWAY PROGRAM Federal Apportionments and Allocations For most of the Program components, the Authorization Act sets the distribution of spending authority among states. The primary methods used to distribute authorized Federal highway revenues are apportionment and allocation. (a) APPORTIONMENTS. The contract authority created by authorization acts such as ISTEA and TEA-21 is distributed annually among the states using a process called apportionment of revenues. Apportionments are the maximum amount of contract authority that each state can expend for projects in specific programs. For each fiscal year, the FHWA has responsibility for apportioning authorized funding for the various programs among the states according to formulas established in the authorizing statute. Apportionment factors include: lane miles, vehicle miles traveled, taxes paid into the HTF, diesel fuel usage, etc. Each program has a unique set of factors which determine the apportionments to the states. Annual apportionments are generally made on October 1st, the first day of the Federal fiscal year. (b) ALLOCATIONS. While most Federal-aid funds are distributed to states through apportionments, some funding categories do not contain legislatively mandated apportionment formulas. Distribution of revenues, where there are not statutory formulas, is based on criteria determined administratively by the Federal Department of Transportation or as provided in a statute. Apportionment formulas have been designed historically to ensure distribution of Federal revenues among states according to program needs, but are also increasingly intended to provide states a share of total HTF revenue relatively close to their payments into the HTF. ISTEA included provisions designed to help states achieve a closer ratio of revenues from the HTF to payments into the HTF (equity provisions) and to assure that no state would suffer a dramatic decline from one year to the next in its Federal-aid apportionment (the hold harmless rule). PAGE 4 FED ERAL FUNDING FOR ARIZONA The Transportation Equity Act for the 21st Century (TEA-21) was enacted into law on June 9, 1998, providing Federal funding through Fiscal Year 2003. TEA-21 provides Arizona with a record amount of Federal-aid revenue. TEA-21 Arizona funding levels totaled $2.8 billion over the six-year period. This level is 84% higher than the amount provided under the prior Federal Transportation Act (ISTEA). On an average annual basis, the Department received $356 million in Federal-aid apportionments with another $110 million allocated to local governments. Apportionments (TEA-21) (Dollars in Millions) Fiscal Year 2002-2003 Highlights Apportionments $600 $500 Total apportionments for Federal fiscal year 2003 totaled $468.2 million, compared to $546.1 million in FY 2002. Through the six years of TEA-21, total Federal-aid apportionments available to Arizona have averaged $466.1 million. $400 $300 $200 $100 1998 1999 2000 2001 2002 Federal Fiscal Year Includes Minimum Guarantee and High Priority Projects PAGE 5 2003 FED ERAL FUNDING FOR ARIZONA Formula Obligation Authority & High Priority Projects Minimum Guarantee Minimum Guarantee Spending Authority totaled $65.9* million in FY 2003. An additional $4.0 million of Minimum Guarantee apportionments is subject to the Formula Obligation Authority, for a total of $69.9 million in Minimum Guarantee apportionments. This compares to $73.4 million in FY 2002. Formula Obligation Authority and High Priority Projects totaled $428.3* million in FY 2003. This compares to $445.2 million in FY 2002. Minimum Guarantee (TEA-21) (Dollars in Millions) Formula Obligation Authority & High Priority Projects (TEA-21) (Dollars in Millions) $80 $500 $60 $400 $300 $40 $200 $100 $20 1998 1999 2000 2001 2002 2003 1998 Federal Fiscal Year 1999 2000 2001 Federal Fiscal Year * $428.3 million plus $65.9 million = Total Obligation Authority of $494.2 million PAGE 6 2002 2003 FED ERAL FUNDING FOR ARIZONA Other Allocations Other allocations received in FY 2003 totaled $15.4 million. This compares to $21.8 million in FY 2002. Arizona received $6.0 million in Federal Grant funds. $4m is for construction of State border safety inspection facilities at the US/ Mexico border at the Nogales Maricopa cargo port of entry. $2m is for construction of a Strategic Weigh and Inspection Facility at the Douglas port of entry. Other allocations include Indian Reservations, Local Transportation Assistance Program, Minority Business Program, Intelligent Transportation, Motor Carrier Safety and Transportation Research. Other Allocations (Dollars in thousands) INDIAN RESERVATIONS TAX EVASION MINORITY BUSINESS SUPPORT SERVICES LOCAL TRANSPORTATION ASSISTANCE PROGRAM MINORITY BUSINESS PROGRAM NATIONAL CORRIDOR PLANNING & DEVELOPMENT PROGRAM INTELLIGENT TRANSPORTATION SYSTEMS SURFACE TRANSPORTATION RESEARCH TRANSPORTATION & COMMUNITY SYSTEM PRESERVATION TRANSPORTATION RESEARCH - ENVIRONMENT SURFACE TRANSPORTATION PROJECTS EMERGENCY RELIEF MOTOR CARRIER SAFETY TOTAL FY 2003 ALLOCATIONS $447 7 336 140 130 6,000 952 200 500 285 2,981 572 2,889 $15,439 PAGE 7 FED ERAL FUNDING FOR ARIZONA Hoover Dam Funding Arizona was allocated $5.9 million in Public Lands Hwy Grant funds for the Hoover Dam project during FY 2003. These funds were allocated directly to the Central Federal Lands Highway Division, which is administering the work on this project. Hoover Dam Funding (Dollars in thousands) FY98 HIGH PRIORITY PROJECTS (Sec 1602) $4,518 FY99 HIGH PRIORITY PROJECTS (Sec 1602) NATIONAL CORRIDOR (Sec 1118) 6,161 2,000 FY00 HIGH PRIORITY PROJECTS (Sec 1602) PUBLIC LANDS DISCR (Sec 1115) PUBLIC LANDS DISCR (Sec 1115) NATIONAL CORRIDOR (Sec 1118) MILITARY CONST BILL (PL 106-246) 7,789 6,000 4,000 2,000 3,000 FY01 HIGH PRIORITY PROJECTS (Sec 1602) HOOVER DAM DEMO (Sec 378) 8,080 19,956 FY02 HIGH PRIORITY PROJECTS (Sec 1602) PUBLIC LANDS DISCR (PL 107-87) 7,804 8,000 FY03 HIGH PRIORITY PROJECTS (Sec 1602) FY03 PUBLIC LANDS HWY GRANT FY03 NEVADA FEDERAL DEMO FUNDS** 7,755 5,913 4,967 TOTAL HOOVER DAM FUNDING $97,943 *Sec 1602 funds are included in Apportionments and are distributed over the 6 years of TEA-21. FY00 & FY01 include Sec 1602 RABA Apportionments received. **Federal allocation made to the State of Nevada PAGE 8 ARIZONA FEDERAL FUNDING SOURCES FY 2003 TOTAL OBLIGATION AUTHORITY ($494.2m) (1) Surface Transportation $129.6 26.2% Interstate Maintenance $94.2 20.1% Surface Transportation $120.9 25.8% Interstate Maintenance $101.0 20.4% Minimum Guarantee $70.1 (2) 14.2% Bridge $13.0 2.7% TOTAL APPORTIONMENTS ($468.2m) National Highway $114.4 23.1% Minimum Guarantee $69.9 14.9% Other $66.1 13.4% (1) Obligation Authority is shown by program category although it is not limited to a specific program. (2) Reflects Obligation Authority limitation on $4.0m as noted on page 6. NOTE: Total Obligation Authority does not include other miscellaneous allocations. PAGE 9 Bridge $12.1 2.6% Other $64.4 13.8% National Highway $106.7 22.8% ARIZONA FEDERAL FUNDS DISTRIBUTION STATE, MARICOPA, PIMA AND LOCALS FY 2003 TOTAL OBLIGATION AUTHORITY TOTAL APPORTIONMENTS ($494.2m) ($468.2m) Total Obligation Authority (Dollars in Millions) Apportionments & Minimum Guarantee (Dollars in Millions) $500 $500 $400 $372.0 $400 $354.2 $300 $300 $200 $200 $100 $80.8 $16.0 MAG PAG $11.1 $14.3 $100 $75.4 $15.0 MAG PAG $10.3 $13.3 $0 $0 STATE LOCALS STATE *OPTIONAL LOCALS *OPTIONAL * Optional use of Transportation Enhancement, Safety and Bridge funds are available to Metropolitan Planning Organizations (MPOs) and Council of Governments (COGs) on a first come-first served basis PAGE 10 ARIZONA APPORTIONMENTS, OBLIGATION AUTHORITY & REIMBURSEMENTS (Includes Minimum Guarantee & High Priority Projects) FEDERAL OBLIGATION FISCAL APPORTIONMENTS YEAR END FY 09/30 AUTHORITY TOTAL END FY 09/30 (1) O.A. % $238,218,749 102.20% REIMBURSEMENTS ADDITIONAL UNOBLIGATED OBLIGATION BALANCE OF AUTHORITY APPORTIONMENTS 1991-92 $233,101,550 $152,300,073 $8,168,587 1992-93 252,834,626 221,392,942 87.56% 179,740,061 6,573,820 1993-94 250,989,265 240,788,537 95.94% 245,913,123 8,324,000 1994-95 265,186,888 252,757,024 95.31% 213,379,038 6,121,044 1995-96 219,882,709 235,657,919 107.17% 232,645,266 1996-97 300,114,264 * 282,854,998 94.25% 294,640,603 1997-98 352,565,695 318,639,756 90.38% 259,394,779 4,727,085 1998-99 433,407,164 384,609,615 88.74% 432,737,810 2,389,596 1999-00 475,048,758 * 418,113,461 88.01% 412,173,350 4,915,687 ** 2000-01 521,578,989 466,560,234 89.45% 459,056,486 4,979,716 2001-02 546,097,028 514,412,037 94.20% 459,409,075 9,046,298 2002-03 468,201,715 494,189,012 105.55% 460,654,075 7,108,189 5,737,471 19,489,270 ** $417,763,168 NOTE: DOES NOT INCLUDE OTHER ALLOCATIONS (1) OBLIGATION AUTHORITY DATA INCLUDES ADDITIONAL OBLIGATION AUTHORITY RECEIVED THROUGH RE-DISTRIBUTION AFTER AUGUST 1ST. * INCLUDES $2,870,615 IN ADDITIONAL FY96 APPORTIONMENT BY THE U.S. TREASURY DEPARTMENT WHICH RESULTED IN CHANGES DUE TO REVISED FY 1994 HIGHWAY TRUST FUND INCOME STATEMENTS RECEIVED BY FHWA. FY00 INCLUDES $2,632,692 FOR FY97 CORRECTION. ** INCLUDES $12,007,562 CORRECTION BY THE U.S. TREASURY DEPARTMENT WHICH RESULTED IN CHANGES PAGE 11 FEDERAL-AID HIGHWAY PROGRAM CHARACTERISTICS Fund Interstate Maintenance Weight Apportionment Formulas Period Available 33.33% Total lane miles on Interstate FY + 3 Years System routes open to traffic in each State as a percent of the total of such lane miles in all States Federal Share % Transferability 94.34 Up to 50% of apportionments may be transferred to NHS, STP, CMAQ and the Bridge program 33.33% Total vehicle miles traveled (VMT) on Interstate System routes open to traffic in each State as a percent of such VMT in all States 33.33% Total of State's annual contributions to the Highway Trust Fund attributable to commercial vehicles as a percent of the total of such annual contributions by all States National Highway System 25% Total lane miles of principal arterials FY + 3 Years (excluding Interstate System) in each State as a percent of total such principal arterial lane miles in all States 35% Total vehicle miles traveled (VMT) on lanes of principal arterials (exc. Interstate System) in each State as a percent of total VMT on lanes of such principal arterials in all States 30% Diesel fuel used on all highways in each State as a percent of diesel fuel used on all highways in all States 10% Total lane miles of principal arterials in each State divided by total population in each State as a percent of such ratio for all States PAGE 12 94.30 Up to 50% of apportionments may be transferred to IM, STP, CMAQ and the Bridge program. Up to 100% may be transferred to STP, if approved by the Secretary and if sufficient notice & opportunity for public comment is given FEDERAL-AID HIGHWAY PROGRAM CHARACTERISTICS Fund Surface Transportation Program Apportionment Weight Formulas 25% Total lane miles of Federal-aid highways (FAH) in the State as a percent of total FAH lane miles in all States Period Available FY + 3 Years 40% Total vehicle miles traveled on lanes of FAH in the State as a percent of total VMT on lanes of FAH in all States Federal Share % Transferability 94.30 Transportation Enhancement set aside up to 25% of the difference between the amount set aside for TE for the FY and the amount set aside for TE FY97 may be transferred to IM, CMAQ, NHS and Bridge Safety set aside - up to 25% of the difference between the remainder of the safety set aside for the FY- the optional safety funds- and the comparable amount for FY97 may be transferred to IM, CMAQ, NHS and Bridge 35% Estimated tax payments attributable to highway users in the State paid into the Highway Trust Fund in the latest fiscal year for which data are available, as a percent of total such payments by all States STP sub allocations Retains 10% set aside for Safety construction No transfer provision of sub allocations (See above for Transportation Enhancement and Safety) Retains 10% set aside for Transportation enhancements Retains set aside for urbanized areas with populations over 200,000 Retains the special rule for areas of less than 5,000 population PAGE 13 FED ERAL-AID HIGHWAY PROGRAM CHARACTERISTICS Fund Bridge Program Apportionment Weight Formulas 1 Each State's relative share of the total cost to repair or replace deficient highway bridges. Guaranteed minimum of .25%, maximum of 10% Period Available FY + 3 Years Federal Share % Transferability 80.00 Up to 50% of apportionments may be transferred to IM, NHS, STP and CMAQ. Congestion Mitigation & Air Quality Program 1 Population & severity of pollution FY + 3 Years 94.30 Minor amount may be transferred if certain requirements are met. Metropolitan Planning 1 Ratio of urbanized population in each State to the total nationwide urbanized area population FY + 3 Years 80.00 No transfer provision Planning & Research 1 2 % of IM, NHS, STP, Bridge and CMAQ apportionments FY + 3 Years 80.00 No transfer provision Minimum Guarantee 1 Ensures that each state receives at Same as fund category to Program least 90.5% return on its share of which funds are allocated applicable contributions to the Highway Trust Fund PAGE 14 Can be expended on any eligible program FEDERAL-AID HIGHWAY CONSTRUCTION PROGRAMS (Dollars in Millions) FY03 ARIZONA OBLIGATION AUTHORITY PROGRAM DESCRIPTION FY03 NATIONAL APPORTIONMENTS NATIONAL HIGHWAY SYSTEM - The National Highway System includes 163,000 miles of rural and urban roads serving major population centers, international border crossings, intermodal centers, intermodal transportation facilities and major travel destinations. Arizona’s portion of the NHS includes 2,674 miles, which is made up of the Interstate System and other high traffic volume highways in the state. Funds can be used for construction, reconstruction, resurfacing, restoration and rehabilitation, and safety improvements. $114.4 $5,448.4 INTERSTATE MAINTENANCE - The Interstate Maintenance Program provides funding for resurfacing, restoring, rehabilitating and reconstructing routes on the Interstate System. The Interstate System is also part of the National Highway System. $101.0 $4,337.3 SURFACE TRANSPORTATION PROGRAM - The STP Program provides flexible funding that may be used by states and local governments on any Federal-aid highway, including NHS, bridge projects on any public road, transit capital projects and intracity and intercity bus terminals and facilities. A portion of funds reserved for rural areas may be spent on rural minor collectors. $103.6 $5,113.8 STP SET-ASIDE FOR SAFETY IMPROVEMENTS - Once the STP funds are allocated to the states, 10% of the amount is set-aside for safety construction activities (hazard elimination and railroad-highway crossing improvements). $13.0 $639.2 PAGE 15 FEDERAL-AID HIGHWAY CONSTRUCTION PROGRAMS (Dollars in Millions) FY03 ARIZONA OBLIGATION AUTHORITY PROGRAM DESCRIPTION FY03 NATIONAL APPORTIONMENTS STP SET-ASIDE FOR TRANSPORTATION ENHANCEMENTS - Once the STP funds are allocated to the states, 10% of the amount is set-aside for transportation enhancement projects. Transportation enhancements are transportation related activities that are designed to strengthen the cultural, aesthetic and environmental aspects of the Nation’s intermodal transportation system. The Transportation Enhancements Program provides for the implementation of a variety of non traditional projects, with examples ranging from the restoration of historic transportation facilities, bike and pedestrian facilities, to landscaping and scenic beautification, to the mitigation of water pollution from highway runoff. $13.0 $639.2 MINIMUM GUARANTEE - The Minimum Guarantee provides funding to states on equity considerations. This includes specific shares of overall program funds and a minimum return on contributions to the Highway Account of the Highway Trust Fund. All states are guaranteed a minimum 90.5% share of Highway Trust Funds designated to their share. $70.1 $2,800.0 CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM - The Congestion Mitigation and Air Quality Improvement Program funds projects and programs in air quality nonattainment and maintenance areas for ozone, carbon monoxide and small particulate matter which reduce transportation related emissions. $37.8 $1,512.8 PAGE 16 FEDERAL-AID HIGHWAY CONSTRUCTION PROGRAMS (Dollars in Millions) FY03 ARIZONA OBLIGATION AUTHORITY PROGRAM DESCRIPTION FY03 NATIONAL APPORTIONMENTS HIGH PRIORITY PROJECTS - This program authorized 1,850 High Priority projects throughout the country totaling over $9.3 billion over a six-year period. The funds are allocated to the states by project according to an allocation schedule over the six-year period. The schedule begins with 11% the first year, 15% the second year, 18% the next two years and 19% the final two years. $11.8 HIGHWAY BRIDGE REPLACEMENT AND REHABILITATION PROGRAM The Highway Bridge Replacement and Rehabilitation Program provides funds to assist the states in projects to replace or rehabilitate deficient highway bridges and to seismic retrofit bridges located on any public road. $13.0 $3,703.2 SAFEY INCENTIVES (0.08 BAC) - Provides funding to states that have enacted 0.08 percent Blood Alcohol Concentration (BAC) as the legal limit for drunk driving offenses. $1.6 $97.3 $1.1 $48.9 RECREATIONAL TRAILS PROGRAM - The Recreational Trails Program provides funds to develop and maintain recreational trails for motorized and nonmotorized recreational trail users. PAGE 17 $1,766.8 FEDERAL-AID HIGHWAY CONSTRUCTION PROGRAMS (Dollars in Millions) PROGRAM DESCRIPTION FY03 ARIZONA OBLIGATION AUTHORITY FY03 NATIONAL APPORTIONMENTS STATE PLANNING AND RESEARCH PROGRAM - Planning of future highway programs and local public transportation systems. Research, development and technology transfer activities necessary in connection with the planning, design, construction and maintenance of highway, public transportation and intermodal transportation systems. These funds are a 2 percent set-aside from certain Federal-aid funds apportioned to a state. $9.7 $498.9 METROPOLITAN PLANNING FUNDS - Metropolitan Planning funds are available for Metropolitan Planning Organizations (MPOs) to carry out the metropolitan transportation planning process required by Title 23, United States Code, including development of metropolitan area transportation plans and transportation improvement programs. $4.1 $194.8 *NATIONAL CORRIDOR PLANNING AND DEVELOPMENT PROGRAM & COORDINATED BORDER INFRASTRUCTURE PROGRAM - TEA-21 authorized $140 million for each of fiscal years 1999-2003 for the National Corridor Planning and Development and Coordinated Border Infrastructure Programs. Allocations are made to states to coordinate planning, design and construction of corridors of national significance, economic growth and international or interregional trade. $6.0 $140.0 PAGE 18 FEDERAL-AID HIGHWAY CONSTRUCTION PROGRAMS (Dollars in Millions) PROGRAM DESCRIPTION FY03 ARIZONA OBLIGATION AUTHORITY FY03 NATIONAL APPORTIONMENTS *MOTOR CARRIER SAFETY ASSISTANCE PROGRAM - The objective of the MCS Assistance Program is to reduce the number and severity of accidents and hazardous material incidents involving commercial motor vehicle through state implementation of a balanced program of enforcement, education and crash data analysis. A portion of the annual authorization is earmarked for grants. The remaining funds are allocated by formula to the states. $2.9 $161.0 *INTELLIGENT TRANSPORTATION SYSTEM - TEA-21 authorized a Technology Deployment Initiative and Partnerships Program to significantly accelerate the adoption of innovative technologies by the surface transportation community. The Research and Development program is to carry out a comprehensive program of intelligent transportation system research, development and operational tests of intelligent vehicles and intelligent infrastructure systems. $1.0 $109.1 *AUTHORIZATION TO STATES WITH INDIAN RESERVATIONS - Section 1212(d) of TEA-21 provides additional funding for states that have within their boundaries all or part of an Indian reservation having a land area of 10,000,000 acres or more. The only Indian reservation meeting this criterion is the Navajo Nation Reservation in Arizona, New Mexico and Utah. The available funds are equally divided among the three states. Each county within any of these three states, that has a public road that meets certain criteria, is eligible to apply for the funds. $0.4 $1.3 PAGE 19 FEDERAL-AID HIGHWAY CONSTRUCTION PROGRAMS (Dollars in Millions) FY03 ARIZONA OBLIGATION AUTHORITY FY03 NATIONAL APPORTIONMENTS *LOCAL TECHNICAL ASSISTANCE PROGRAM - The purpose of this program is to provide training and technical assistance to rural, small urban and tribal governments on roads, bridges and public transportation. Under TEA-21, LTAP received $7 million contract authority for FY 1998 and 99, $8 million for FY 2000, $9 million for FY 2001 and $10 million for FY 2002 and 03. $0.1 $10.0 *MISCELLANEOUS ALLOCATIONS Minority Business Program $466k, Emergency Relief $572k, Tax Evasion 7k, Transportation Communication $3m and other Transportation Projects $985k. $5.0 N/A PROGRAM DESCRIPTION *Formula allocations PAGE 20