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Perspectives on a Performance-Based Federal-aid Highway Program

This article discusses the need for a performance-based program in the federal-aid highway program and the considerations and goals involved. It also explores performance areas, measures, accountability, and the phased implementation required.

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Perspectives on a Performance-Based Federal-aid Highway Program

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  1. Perspectives on a Performance-Based Federal-aid Highway Program Jeffrey F. Paniati Executive Director, Federal Highway Administration January 12, 2010

  2. My Perspectives • Time is right for performance-based program • SAFETEA-LU Commissions, GAO, Congressional Committees, AASHTO, USDOT all agree • Must not only refocus Federal program, but also establish accountability for performance • Clear expectation that performance approach will be implemented aggressively

  3. Considerations • Key performance areas • Most appropriate performance measures • National goals • State performance targets • Accountability for performance • Transition to performance-based program

  4. Goals of Performance-Based Program • Improve performance in key areas of national interest • Shift emphasis of Federal oversight from process to performance • Improve decision making and resource allocation • Improve accountability

  5. Performance Areas • What are the most appropriate areas to be managed for performance? • Want a relatively few performance areas that broadly reflect national interests, e.g., • Safety • Pavement and bridge condition • Congestion • Freight/economic competitiveness • Environment/climate change • Livability

  6. Performance Measure Criteria • Directly related to highway investment • Outcome oriented • Reflect most important aspects of performance • Not unduly burdensome to collect • Understood by public • Change within acceptable timeframe

  7. Evolution of Performance Measures • Data currently available on a consistent basis may not be ideal in the long run (e.g., IRI) • Don’t want to postpone performance management until we have ideal data • Foresee a process where new performance measures may be added as improved data become available

  8. Performance Goals and Targets • Who sets national goals: Congress? USDOT? States? Collaborative process? • My Perspective: National goals should be set by USDOT in consultation with States and other stakeholders • State targets should be set locally in consultation with USDOT. • Collaboration is key to realistic goals and shared accountability

  9. Performance Goals and Targets • Long-term goals (20 years) provide a vision and direction for the program • Shorter term national and State targets (covering the authorization period) indicate what will be achieved with the money being spent • Short term targets should be aligned with available resources • State targets should recognize differences among States • Annual milestones or interim targets required for effective oversight

  10. Performance Monitoring • States should formally report on performance annually • Initial focus on whether States have the data and tools to effectively manage performance • As quickly as possible shift focus to actual performance outcomes

  11. Accountability • Should influence decision making • Should be based on reasonable targets and expectations • Should be consequences for failure to meet targets • Options include funding flexibility and level of oversight • Loss of Federal funds generally not an effective option

  12. Phased Implementation • Aggressive but realistic timeframe • Improve States’ capabilities to link investment to performance in key areas • Improve data required to measure performance • Phase in measures to promote improved performance • Perhaps institute pilot programs for more advanced States

  13. Federal-State Relationships • Could represent significant change in Federal-State relationships • FHWA traditionally has managed for process, not performance • Not necessarily more oversight, just a different kind of oversight • “Performance Partnership” with both FHWA and the States being accountable

  14. Performance Management in House T&I Bill • Performance orientation for major programs – freight, safety, critical asset investment, metropolitan mobility and access, metropolitan and statewide planning • Targets would be set in legislation for safety, pavement and bridge condition • Penalties for noncompliance

  15. On-Going FHWA Efforts • Currently developing framework for implementing performance-based Federal-aid program • Two major research projects • One to provide support for developing legislative language • Another to provide technical basis for regulations to implement performance-based program • Must get both right to be effective

  16. Implementation Will Require Internal FHWA Changes • FHWA has initiated effort to identify internal changes needed to implement a performance-based program • Organizational changes • Headquarters • Field offices • Develop new skills • Develop new approaches to oversight

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