A Review of the Department of Transportation’s Scheduling of Projects for Selected Highway Construction and Maintenance Programs
Executive Summary
Introduction
In conducting this review, PEER’s primary goal was to determine whether the Mississippi Department of Transportation (MDOT) utilizes an objective and verifiable process for determining the immediate, mid-range, and long-range needs of Mississippi’s highways and whether its scheduling of construction and maintenance is in concert with that process.
PEER sought to determine:
For purposes of this review, PEER evaluated only the highway construction and maintenance scheduling that MDOT oversees, which includes U. S. and state highway construction projects as well as interstate construction projects. This review did not include state aid projects, which consist of city and county roads and are defined by MDOT as roads that connect communities within individual counties and with adjoining counties and/or which also connect with the state highway system to form a complete network of secondary routes.
Although authority and responsibility of the Mississippi Transportation Commission and MDOT also include aeronautics, public transit, ports and waterways, and rail facilities, this report focuses exclusively on issues related to highways.
Background
Statutory Authority and Responsibilities of the Transportation Commission and the Department of Transportation
MISS. CODE ANN. Sections 65-1-3 through 65-1-9 (1972) establish the Mississippi Transportation Commission as the governing body for the Mississippi Department of Transportation and give it authority to appoint an Executive Director to carry out the day-to-day operation of the department subject to the commission’s orders and directions. The commission members are elected one each from the state’s three Supreme Court districts.
MISS. CODE ANN. Section 65-1-2 (1972) establishes the Mississippi Department of Transportation. According to MDOT’s FY 2007 Annual Report, the department’s mission is to provide “a safe intermodal transportation network that is planned, designed, constructed and maintained in an effective, cost-efficient and environmentally-sensitive manner.” MISS. CODE ANN. Section 65-1-2 (1972) designates the department as the single state agency to receive and expend funds from the federal government for transportation purposes.
MDOT’s Authority and Responsibility for Prioritizing and Scheduling Highway Construction and Maintenance
State law establishes several prioritization mandates for the scheduling, construction, and maintenance of the state’s highway system. These statutes require MDOT to prioritize projects based on criteria such as traffic volume in relation to road capacity, route continuity, public safety, and economic benefit.
Chapter 1 of Title 65 of the MISSISSIPPI CODE contains several sections requiring MDOT to prioritize highway projects and to communicate this information to the Legislature. Some of these sections apply to all MDOT highway projects, while other sections apply to specific highway programs such as the 1987 Four-Lane Highway Program.
Pages 9 through 14 of the report provide more detail on the statutory requirements for scheduling, construction, and maintenance of Mississippi’s highways.
The Department of Transportation’s Highway Construction Schedules and Funding Programs
Highway schedules show, by fiscal year, estimated costs of highway construction projects, the phases of those projects (e. g., design, right of way, or construction), the scope of work (e. g., grading of road, replacement of bridge, reconstruction of road), and the sources of funding. The Department of Transportation maintains highway schedules funded through state revenue and five major federal sources. These schedules list all proposed, active, or upcoming highway projects, which are funded through the five programs over a period of up to six years. Projects must meet the federal program requirements in order to receive funding. Projects may receive funding through more than one program, but must meet the requirements of each program providing funding.
Pages 17 through 21 of the report provide more detailed information on the department’s construction schedules and funding programs.
Conclusions: MDOT’s Management of the Vision 21 Program and Selection and Funding of Highway Maintenance and Bridge Projects
How MDOT Manages the Vision 21 Highway Construction Program
MISS. CODE ANN. Section 65-3-97 (1972) requires that MDOT schedule Vision 21 highway construction projects in accordance with priorities determined by needs analyses conducted by the department and annually review such priority schedule to determine whether it needs revision. Prior to November 2008, MDOT did not “construct, upgrade, or improve” Vision 21 highway segments in accordance with such a schedule, but allocated funds to highway districts based primarily on traffic volume within each district. However, factors affecting the prioritization of highway construction projects (e. g., provisions in state law regarding the utilization of federal funds and acceleration of projects related to economic development) inhibit the department’s ability to advance highway construction projects purely on a statewide, needs-based priority system.
MISS. CODE ANN. Section 65-3-97 (5) (a) (i) (1972) requires that MDOT schedule Vision 21 highway construction projects “in accordance with a priority schedule based upon a needs analysis” performed by the department. Over a three-year cycle, MDOT collects traffic volume data and calculates the volume/capacity ratio for highways under MDOT’s authority. From this information, MDOT determines each Vision 21 highway’s “year of need,” which is the year in which the level of service on a segment is projected to deteriorate to an unacceptable level.
Although the information collected could have been used as part of a statewide, needs-based method for prioritizing highway construction projects, prior to November 2008, the Mississippi Transportation Commission and Department of Transportation did not “construct, upgrade, or improve” highway segments in accordance with a statewide priority schedule based on a needs analysis. Instead, MDOT allocated funds to the highway districts based primarily on traffic volume within each district. According to MDOT, in November 2008, the department changed its method of allocating construction funds from allocating funds to each district based on the number of vehicle miles traveled in each district to allocating the funds for construction projects based on a statewide needs-based priority list. From November 2008 through January 2009, no projects were allocated-either in accordance with the statewide needs-based priority system or with MDOT’s previously used method.
When the Vision 21 Program was created, MDOT continued some highway construction projects already in process in an attempt to meet the statutory requirements for such projects to be let no later than January 1, 2006. In some cases, this resulted in projects with a later year of need (as designated by MDOT) being accelerated ahead of projects with an earlier year of need.
Provisions of state law allow the Transportation Commission to adjust the sequencing of projects to maximize the utilization of funding or accommodate the relative requirement of each project. Other provisions allow the commission to consider economic development in establishing a priority schedule. As a result, highway construction projects with a lower priority may be advanced before projects with a higher priority. These are factors that the department has the flexibility to consider in an annual review of the schedule. However, these factors inhibit MDOT’s ability to advance highway construction projects purely on a statewide, needs-based priority system.
PEER found that the Transportation Commission has complied with MISS. CODE ANN. §65-3-97 (5) (e) (1972) by dedicating at least $200 million annually in state and/or federal funds to Vision 21 projects.
How MDOT Selects and Funds Highway Maintenance Projects
MDOT collects quantifiable engineering data on the maintenance needs of highway segments. However, the department prioritizes highway maintenance projects by district and allocates funding based on total vehicle miles traveled within each district, rather than on the basis of statewide, prioritized maintenance needs.
In addition to pavement overlay, highway maintenance includes activities such as mowing, guardrail repair, litter cleanup, preventive maintenance (e. g., pothole and crack repair), and repairs related to earthslides.
In determining highway maintenance needs, MDOT collects scientific data as well as input from district engineers, representatives from the Federal Highway Administration, and employees of MDOT’s Maintenance and Research divisions. The department’s staff prepares a final maintenance list for each district based on the electronic and visual inspections and input from the above-noted individuals. However, rather than preparing a statewide maintenance needs list, MDOT divides the maintenance needs list by district and allocates maintenance funds to each district based on total vehicle miles traveled in the district. Allocating maintenance funds based on total vehicle miles traveled rather than based on needs does not ensure that the state’s highest priority maintenance needs are met.
How MDOT Selects and Funds Bridge Replacement Projects
The Department of Transportation uses a statewide, needs-based prioritization method to select state highway bridge replacement projects.
MDOT receives $50 million each year in bridge replacement funds for state and national highway bridges. Of this total, $40 million comes from federal funds and $10 million comes from state-appropriated dollars.
MDOT’s scientific, needs-based system of bridge replacement prioritization allows MDOT to track and address state bridge replacement needs from most critical to least critical. MDOT uses three key indicators to help plan, evaluate, and prioritize the state’s bridge replacement needs: the sufficiency rating, the structural rating, and the Significant Index Model.
According to PEER’s analysis of the MDOT state highway system bridge inventory, MDOT has 455 bridges with a sufficiency rating of below 50, which qualifies them for Federal Highway Bridge Replacement and Rehabilitation Program funds. Of these 455 bridges, 107 have a structural rating that identifies them as a high priority for corrective action or replacement.
According to MDOT personnel, the cost in today’s dollars to replace all of the state highway system bridges that are in need of replacement would be approximately $975 million; therefore the department cannot fully address the number of state highway system bridges in need of repair, rehabilitation, or replacement. If the condition of some of the bridges with a sufficiency rating of 50 or less is not addressed, MDOT may have to post warning signs or possibly close some bridges.
According to the Federal Highway Administration, MDOT could use program funds such as Surface Transportation Program, National Highway, Maintenance funds, and state funds to apply to bridge replacement projects as long as the bridge selected is included in a highway project that qualifies for those funds. According to MDOT officials, this course of action is followed whenever possible and MDOT also utilizes Interstate Maintenance funds for bridge replacement where appropriate. Further, if bridge replacement funds or other federal funds are not available, MDOT uses state funds to replace or rehabilitate unsafe bridges on a case-by-case basis.
Conclusion: The Department of Transportation’s Management of Hurricane Katrina Emergency Relief Fund Projects
According to records provided by MDOT, the department used all but approximately $105 million of the Emergency Relief funds received from the Federal Highway Administration on the construction and completion of Hurricane Katrina-related projects. The remaining approximately $105 million in funds may be drawn upon to complete any remaining projects related to Hurricane Katrina.
As of March 6, 2006, MDOT was allocated $1.013 billion in Emergency Relief funds for highway projects related to Hurricane Katrina. In August 2007, MDOT received an additional $20 million in Emergency Relief funds for a total federal allocation of $1.033 billion to be used for projects related to Hurricane Katrina. As of June 30, 2008, MDOT had expended approximately $928 million of the $1.033 billion allocated to the department for the reconstruction and completion of Hurricane Katrina-related highway projects.
Exhibit 7, page 42 of the report, provides a list of all Emergency Relief fund projects and total expenditures for each.
Recommendations