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

Urban-Rural Initiative Urban-Rural Initiative Program Program

a repor a report by by

the Office of Program Evaluation & Government Accountability

FINAL FINAL REPORT REPORT

July

2007 2007

OPEGA REVIEW

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The Program ――――――――――――――

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. Urban-Rural Initiative Program (URIP) Urban-Rural Initiative Program (URIP)

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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.

The Program ――--――――――――――― 23 MRSA §1801

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Audit Purpose ――――――---――――――

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 Sought to Answer the Questions … OPEGA Sought to Answer the Questions …

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• 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.

Methods ―――――――――――――--―――

To answer these questions, OPEGA ……. To answer these questions, OPEGA …….

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Background ――――――――――――――

Changes:

• URIP funding guaranteed and indexed
• Increased lane mile rates
• Shifted focus to capital improvements
• Hold harmless provision

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)

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Funding levels SFY1993-SFY2008 Funding levels SFY1993-SFY2008

Background ――――――――――――――――

$22.8 $19.3 19.2 $19.6 $22.8 $25.2 $25.1 $10 $12 $14 $16 $18 $20 $22 $24 $26 1993 1996 1999 2002 2005 2007 2008

State Fiscal Year Funding $ (millions)

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Background ―――――――――――――――

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

Two components of URIP Two components of URIP

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Background ―――――――――――――――

Urban Compact areas: maintenance or improvement of public roads Rural areas: capital improvement projects only

What may URIP funds be used for? What may URIP funds be used for?

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Background ―――――――――――――――

Based on:

• Lane miles
• Road classifications and location
• Responsibilities

How are URIP funds allocated? How are URIP funds allocated?

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Urban-Rural Initiative Prog Urban-Rural Initiative Program ram Rates Per Lane Mile* Rates Per Lane Mile*

Background ――――――――――――――

State Urban Compact H State Urban Compact Highways ghways Summ Summer er Winter Winter Ro Road Classificatio ad Classification Rur Rural Highw l Highways 1st two lanes more than two lanes All 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 A State Aid Minor Collect d Minor Collector $600 $2,500 $1,250 $0.00 To Town 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.

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Background ―――――――――――――――

• Maine DOT calculates URIP allotment for

each entity

• Recipients must submit certification
• Payments made quarterly, as per statute

How are URIP funds distributed? How are URIP funds distributed?

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Background ――――――――――――――

Distribution of SFY 2006 URIP Allotments Distribution of SFY 2006 URIP Allotments

31 108 85 60 28 16 11 5 17 13 7 120 20 40 60 80 100 120 140

0-5 5-20 20-35 35-50 50-65 65-80 80-100 100-200 200-300 300+

URIP $ Distributed (thousands) Number of Funding Recipients Urban Rural

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Background ―――――――――――――――

• Roads budget supplementation
• Expend every year or carry-over
• Overall, road expenses typically exceed URIP

funding allocations

How do funding recipients process and How do funding recipients process and utilize URIP funds? utilize URIP funds?

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Conclusions ―――――――――――――――

• 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.

Original Questions Original Questions

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Finding Finding

Data on actual fund use is not collected. Compliance cannot be specifically verified nor program effectiveness assessed.

Management Action Management Action

Beginning July 1, 2008 MaineDOT will require funding recipients to provide information regarding how URIP funding was used in the previous year.

Finding 1 ――――――――――――――――--

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Finding Finding

Opportunity exists to reduce administrative costs.

Finding 2 ――――――――――――――――--

Management Action Management Action

MaineDOT and the Maine Municipal Association will work together to encourage recipients to accept URIP payments by direct deposit.

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Observation ―――――――――――――――--

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.

LD1790/Senate Paper 731 LD1790/Senate Paper 731

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Acknowledgements ―――――――――――-

• Maine Municipal Association
• Municipal Officials
• MaineDOT

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Questions?