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ARRA PROGRAM RE-EVALUATION GUIDANCE TO REGIONS AND MPOs
As you know, New York State’s transportation agencies are positioned to take advantage of
every dollar available from the American Recovery and Reinvestment Act (ARRA). This is due
largely to the tremendous efforts of the state’s Metropolitan Planning Organizations and
NYSDOT Regions, and these efforts are recognized and very much appreciated. Thanks to your
diligence, as of April 7, 2009, seventy-three projects totaling close to $289M in ARRA funds had
been certified by the Governor pursuant to Section 1511. These certifications can be seen at
http://www.economicrecovery.ny.gov/Certifications/certifications.htm
Now that ARRA has passed into law and we have had time to review and understand its numbers
and requirements, it is apparent we have more ARRA-related work to do. We now know the
dollars that New York State can expect to receive in this first distribution of ARRA funding.
We also know that the bill includes extensive requirements for reporting and accountability, tight
time frames for obligating the funds, and several certifications from the governor’s office.
In addition, we can expect enhanced oversight from USDOT and the General Accountability
Office (GAO) as well as the Office of the State Comptroller (OSC). We have also received
thousands of project proposals.
For these reasons we need to undertake a thorough but rapid re-evaluation of our programs for
utilizing ARRA and other federal-aid transportation funds. To assist in this effort, this document
will provide you with revised planning and allocation targets, factors to guide and refine ARRA
programming decisions, and information on opportunities to increase your future shares of re-
distributed ARRA funds.
Planning targets issued to you previously were based on early versions of the stimulus bill which
would have apportioned $1.4 Billion to New York State. The ARRA signed by the president on
February 17 resulted in an apportionment to New York State of $1.12 Billion in highway and
bridge funds. This includes sub-allocations to urban areas, revised requirements on time frames
for obligating funds, and a requirement that priority programming consideration be given to
“economically distressed” areas1 and project completion within 3 years.
At this time, the Regions and MPOs are asked to review their ARRA programs based on
information in the attached materials. Additional documentation of the ARRA programming
process is necessary. Program adjustments are also likely to be necessary. These adjustments
should be progressed through the normal administrative modification or amendment process as
quickly as possible:
• Attachment 1: Criteria for ARRA Fund Programming
• Attachment 2: Planning and Allocation Targets
• Attachment 3: Guidance for Economically Distressed Areas
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That in selecting projects to be carried out with funds apportioned under this heading, priority shall be given to projects
that are projected for completion within a 3-year time frame, and are located in economically distressed areas as defined by
section 301 of the Public Works and Economic Development Act of 1965, as amended (42 U.S.C. 3161)
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ATTACHMENT 1
CRITERIA FOR ARRA FUND PROGRAMMING
Due to ARRA certification, transparency and accountability requirements and due to the level of
scrutiny ARRA programming will receive from Congress and federal agencies, we need to
demonstrate that ARRA infrastructure investments are an appropriate use of taxpayer’s dollars
and need to fully document that ARRA projects meet the priority project criteria required in the
bill. Toward that end, please review your documentation for the ARRA project programming
process using the following criteria as a model and make adjustments or fill in gaps as necessary.
Please make sure you have documentation that each criterion was considered. It is possible the
federal Government Accountability Office (GAO) may be auditing ARRA projects from “cradle
to grave” (planning to construction) so it is important to ensure ARRA requirements and proper
planning principles were followed. Attachment 3 specifically addresses guidance for
consideration of projects in economically distressed areas (EDAs). Appendix A addresses how
locations of EDAs were identified.
TIP Amendment Resolutions
After the ARRA program re-evaluation process is complete, MPOs will need to pass TIP
amendment resolutions that reflect the project priority criteria in the ARRA bill. These
resolutions are necessary to properly document that the projects chosen for ARRA funding are
consistent with the priorities in the final ARRA legislation. If an MPO does not use
resolutions for TIP amendments, the cover letters transmitting the amendments to
NYSDOT will suffice. Resolutions or cover letters should include language for the priority
project criteria below as applicable. At a minimum you must attest that the criteria in the bill
were used to prioritize projects; i.e. that priority was given to projects that a) can be started and
completed expeditiously (completed within three years), b) maximize job creation, and c) are
located in economically distressed areas. Please transmit these resolutions/cover letters to
your MPO Section analyst in the Statewide Planning Bureau as soon as possible or by May
18 at the latest.
Regions will also need to submit documentation (a few paragraphs) after the re-evaluation
process is complete indicating how the following criteria were considered in the programming
process for projects outside the MPO area. Please provide this information to Dave Rettig by
April 17.
1. Projects are eligible for federal-aid and are ready to go (can be obligated, let and awarded
within a very short period and can be completed within 3 years).
2. Projects are already on the TIP/STIP [and may address current TIP/STIP over-
programming].
3. Projects require no ROW acquisition, utility relocation or special environmental
permitting, meet air quality conformity requirements as applicable, and are consistent
with MPO Long Range Plans and federal planning requirements.
4. Projects maximize job creation.
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5. Projects address key infrastructure/asset needs such as highway, bridge and culvert
maintenance, and accessibility, safety and mobility improvements for all modes.
6. Priority is given to projects located in economically distressed areas as defined by section
301 of the Public Works and Economic Development Act of 1965, as amended (42 USC
3161).
7. Projects address geographic equity considerations.
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ATTACHMENT 2
PLANNING AND ALLOCATION TARGETS
Highway program funds included in the American Recovery and Reinvestment Act (ARRA)
provide a unique opportunity to accelerate and increase transportation infrastructure projects in
our state. When combined with regular annual federal transportation aid and State funding,
ARRA funding will allow state and local governments to expand transportation investment
significantly. ARRA aid comes at a particularly opportune time, as both the state and localities
have had to delay infrastructure projects due to increases in project cost and the inability to find
additional funding due to severe financial constraints resulting from the national recession.
In administering this program, we must keep in mind the “use it or lose it” requirements of
ARRA funding. Priority must be given to ready-to-go projects in order to meet the federal
delivery criteria contained in the law signed by President Obama and designed to create jobs and
provide stimulus to the economy. Every attempt will be made to ensure geographic equity in the
use of the ARRA funding, however, the primary emphasis should be on those projects, state or
local, which are ready for obligation of federal funds and contract letting.
It also is important to recognize that the addition of American Recovery and Reinvestment
funding to the core federal transportation aid program will result in the largest highway and
bridge construction program ever delivered. As transportation projects move through the design
and construction process, there are issues that routinely arise that may accelerate or delay certain
projects. By managing ARRA and regular federal aid projects together as one overall program,
projects that best meet the ARRA requirements can be advanced quickly, regardless of region of
the state. Other projects are more appropriately funded through the regular program where there
may be more flexibility with funding or schedule. It should be recognized that the primary
criterion for ARRA funding will be whether projects are ready for construction letting.
The combination of state and local transportation infrastructure projects will far exceed the
American Recovery and Reinvestment program funding available to New York. Projects not
funded through ARRA sources will be prime candidates for funding from the regular federal
program to help fill the void created by moving ahead those ready-to-go core projects.
Finally, we must recognize that identifying state and local project needs for ready for ARRA
funding will also help position New York to argue for additional federal transportation aid as
part of the preparation of the next multiyear transportation bill. The current statute, SAFETEA-
LU, expires on September 30th. In order to sustain the job creation and economic benefits of the
federal stimulus package, a significant transportation reauthorization program needs to be
enacted upon the expiration of SAFETEA-LU.
ARRA funding will be managed by NYSDOT in a manner to maximize the early obligation of
funding. The ARRA requires that NYSDOT obligate over $392 million of the funding by June
29, 2009 (120-day use or lose deadline) with the remainder of the funds to be obligated by March
1, 2010 (one year after apportionment). In addition, New York will be eligible, if it meets the
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above deadline, to receive redistributed funds that other states are unable to obligate in the
required time frames.
In order to maximize the early obligation of ARRA funds, each Region will receive a base level
of funding as well as an opportunity to receive bonus funds. The ARRA Floor (Column 4) in the
following table represents the base amount of ARRA funds made available to the Regions/MPOs
now and must be obligated in order to spend up to the apportioned level. In addition, obligating
this amount within 120 days will position New York State to receive funds not obligated by other
states. Regions and MPOs are encouraged to deliver their projects quickly so they have the
opportunity to exceed this floor.
Regions that deliver their floor ARRA allocation within 120 days will be permitted to spend up
to their Apportioned ARRA Level (Column 3). If all Regions obligate their Apportioned Level
within 120 days, New York State will have obligated its entire apportionment of ARRA funds,
putting us in position to receive additional funds that may result from the redistribution of funds
not obligated by other states. Additionally, Regions that fail to spend their floor ARRA
allocation in 180 days risk having their unobligated funds redistributed to ready-to-go projects in
other Regions. It is expected that all Regions will have sufficient projects to spend up to their
Apportioned Level; however to ensure that New York State does not lapse any funds the
flexibility to move funding between regions must be retained.
Every Region that has sub-allocated large urbanized area funds will at a minimum receive their
large urban share as dictated by the Act. The sub-allocations for small urban and rural areas are
not specifically identified by area in the Act but are included in the sub-allocated numbers in
Column 5 in the Regions where they apply. All sub-allocated funds must be obligated within one
year of apportionment or these funds will be redistributed by the FHWA.
The Apportioned ARRA Level (Column 3) uses the FHWA apportionment made on March 2.
The Planning Target (Column 2) and Apportioned ARRA levels allocate all funds (except for a
3% take down for TEP which will be distributed by project specific award*) based on the 2005-
2010 MOU. The individual Region’s share of the funds allocated to the upstate MOU area is
determined by the formulas from the most recent program update. The Apportioned ARRA
Level should be the Region’s goal for delivering ARRA funds.
The Planning Target in Column 2 is the level FHWA has agreed to allow the State to program on
the MPO TIPs and collectively on the STIP. This planning target may be larger than what
Regions and MPOs have currently programmed on the TIPs and STIP for ARRA. As we
believe it is prudent to have this contingency level programmed on the TIP and STIP in order to
be able to take advantage of any redistributed ARRA funds, we are asking that you process the
necessary amendments or administrative modifications to reach this planning target. It may be
necessary to move illustrative projects or consider new projects using the ARRA TIP/STIP fund
source for this purpose.
*See TEP discussion later in this section
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PLANNING AND ALLOCATION TARGET TABLE
Column 1 Column 2 Column 3 Column 4 Column 5
Apportioned
Planning Suballocated
Region ARRA Level ARRA Floor
Target (1 Year)
(expected level)
1 123.33 98.12 65.4 16.41
2 31.77 25.28 12.8 9.22
3 71.66 57.01 34.4 14.05
4 93.14 74.10 45.5 17.17
5 90.91 72.33 39.3 23.18
6 41.88 33.32 22.3 5.46
7 43.46 34.58 23.0 5.82
8 211.04 167.90 96.9 46.77
9 70.83 56.35 39.1 7.50
10 193.81 154.19 84.4 48.76
11 394.54 313.89 137.8 141.88
TEP 33.62 33.62
Total 1,400.00 1,120.69 600.8 336.22
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Project Descriptions
FHWA and the Governor’s office have indicated a concern with project descriptions in the STIP
for ARRA funding. Specifically, project descriptions need to contain sufficient detail to
determine what work will be undertaken. FHWA, as well as NYSDOT, is going to be under
close scrutiny by the OIG regarding use of stimulus funding. Proper project descriptions written
in layperson’s terms (no jargon or acronyms) are needed for transparency and because projects
will be widely published on the web. Consequently, please ensure the project descriptions are
adequate to describe the work and to insure funding eligibility. This should be done during the
TIP/STIP administrative modification and amendment process.
Transportation Enhancement Program (TEP)
The 2008 TEP Round has funds available for project awards from SAFETEA-LU
apportionments which are capped at 80% of project costs up to $2.5 M per project. TEP
candidate projects for the 2008 round were evaluated and ranked according to established
Regional and MPO review committee processes for this program. Regional and MPO priority
ranked projects were submitted to the Transportation Enhancement Advisory Committee
(TEAC) for review and award decisions. Letters announcing 2008 TEP project awards were sent
to project sponsors/applicants on April 2, 2009.
The ARRA includes an allocation of $33.6 M for TEP eligible projects. Project sponsors for the
2008 TEP Round funds were contacted by NYSDOT to determine if their projects could be
delivered in time to meet ARRA requirements. Projects that had been approved for funding by
the TEAC and could also meet ARRA requirements were identified by NYSDOT to be advanced
with ARRA funds. Projects located in economically distressed areas were given priority. Letters
announcing ARRA TEP project awards were sent to project sponsors/applicants on April 2,
2009. ARRA TEP projects are funded at a 100% federal level. In addition, there is no dollar cap
on project size.
Projects funded through the ARRA will have reporting requirements above and beyond that of a
typical federal aid project administered with FHWA funds through NYSDOT. Additionally,
50% of non sub-allocated funds need to be obligated within 120 days which began on March 2,
2009 (the date NYSDOT received the funds from FHWA). The 120 days ends on June 29, 2009.
All funds must be obligated by March 1, 2010 or they will lapse on September 30, 2010 and be
eligible for redistribution at a later date.
Each project needs to be incorporated into a Transportation Improvement Program (TIP) if
located within a Metropolitan Planning Organization (MPO) and the Statewide Transportation
Improvement Program (STIP) before federal authorization may be requested and ARRA funds
may be obligated.
Sponsors need to enter into a State-Local Agreement (SLA) in 120 days, completing resolutions
and obtain approvals necessary to execute a SLA. A reimbursement request must be submitted
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for each project within 6 months of receiving federal authorization otherwise the funds may be
de-obligated. Each project must complete construction within 3 years, March 3, 2012. All
requests for reimbursement must be submitted to FHWA no later than September 30, 2015 as the
funds expire.
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ATTACHMENT 3
ECONOMICALLY DISTRESSED AREAS IN NY STATE
The American Recovery and Reinvestment Act of 2009 (ARRA) requires that in selecting
projects using FHWA funds, priority shall be given to projects that are “located in economically
distressed areas as defined by section 301 of the Public Works and Economic Development Act
of 1965, as amended (42 USC 3161)”. This is not a mandate that every ARRA project be located
in an economically distressed area (EDA). It is one of several priorities that need to be
considered when choosing projects.
The methodology NYSDOT used for determining locations of economically distressed areas is
based on the criteria in 42 USC 3161 and can be seen in Appendix A. A total of 30 counties and
4 cities in New York State meet the criteria for economically distressed areas (see following
map). A review of the projects enabled for ARRA funding currently on the STIP reveals that
there are projects which can be obligated in the first 120 days in each of the 30 counties and four
cities.
In order to give priority in project selection to projects located in economically distressed areas,
each Region and MPO should advance all ARRA funded projects located in economically
distressed areas that are currently programmed on the STIP, and that have an “earliest possible
letting date” on or before 8/15/09. This corresponds to an obligation date within the first 120
days of the Act. Any exception to this must be documented with a defensible argument as to
why the EDA project was not chosen. ARRA funded projects in EDAs have been identified with
an asterisk on the attached list of programmed and illustrative highway and bridge projects by
Region.
Tim Conway has been assigned as a statewide “steward” for the projects located in economically
distressed areas. He will be responsible for tracking and documenting the progress of these
projects and ensuring that unnecessary roadblocks to delivery are removed. If one or more of
these projects cannot be obligated within 120 days, Regions should provide documentation to
Tim Conway identifying the reason the projects cannot be delivered. It should be noted that
while Regions should make every effort to advance these projects, substitute projects will be
allowed, by exception, with acceptable documentation. This provides a good balance between
“ready to go” projects and projects in “economically distressed” areas.
To the extent that Regions and MPO’s are able to add additional projects to the STIP within the
new Planning Targets received, a project located in an economically distressed area should be
chosen over other equally “ready to go” projects.
Tim Conway will keep up to date records on these actions, and provide a summary report on
March 2, 2010 at the completion of ARRA obligations.
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APPENDIX A
According to 42 USC 3161, economically distressed areas are defined as those areas meeting one
or more of the following three criteria:
1. The area has a per capita income of 80 percent or less of the national average;
2. The area has an unemployment rate that is, for the most recent 24-month period, at least
1% greater than the national average unemployment rate;
3. The area is an area the Secretary (of Commerce) has determined has experienced or is
about to experience a special need arising from actual or threatened severe
unemployment or economic adjustment problems.
An area that meets 1 or more of the above criteria, including a small area of poverty
or high unemployment within a larger community in less economic distress, is
eligible for assistance under section 3141 or 3149 of USC 42 3161 without regard
to political or other subdivisions or boundaries.
The ARRA bill also states that the identification of EDAs shall be supported by using the most
recent Federal data available (or State data if no recent Federal data is available).
Criteria 1 and 2
NYSDOT has identified EDAs based on criteria 1 and 2 above using the following Federal data
sources:
Unemployment - US Department of Labor, Bureau of Labor Statistics, Local Area
Unemployment Statistics
The most recent data available are for 2007 and 2008. The 24-month average was
calculated by summing the monthly data for labor force and unemployment, then
dividing the two sums to get the 24-month average.
The data are available for the nation, the state, counties, and cities and towns over
25,000 in population.
Per Capita Income – US Department of Commerce, Bureau of Economic Analysis, Regional
Economic Information System 1969-2008
The most recent data available are for 2006.
Data are available for the nation, the State, counties, and other areas defined as
one or more counties (e.g. micropolitan statistical areas).
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Using these data, a total of 30 counties meet the per capita income criteria. In addition, 8 of
those 30 counties also meet the unemployment rate criteria, and an additional 4 cities meet the
unemployment criteria as well.
The Counties meeting the Per Capita Income criteria are:
Allegany Essex Otsego
Bronx Franklin St Lawrence
Cattaraugus Fulton Schoharie
Cayuga Genesee Schuyler
Chautauqua Herkimer Seneca
Chemung Lewis Tioga
Chenango Livingston Washington
Clinton Montgomery Wyoming
Cortland Orleans Yates
Delaware Oswego
The Counties and cities that meet the Unemployment Rate criteria are:
Bronx County
Franklin County
Niagara County
Montgomery County
Orleans County
Oswego County
St. Lawrence County
Schoharie County
Buffalo city
Niagara Falls city
Newburgh city
Rochester city
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Criteria 3 – Special Needs
The federal Economic Development Administration also got (non-transportation) stimulus
funding, and they issued guidance on how to apply. Within that guidance (Section VII, copied
below), they defined the "special need" criteria in a lot of detail. While NYSDOT has not
identified EDAs using this criterion, if Regions or MPOs want to make a case for additional
EDAs using special need, they may do so. However, the EDA usually deals with this special
need determination on a case by case basis as it applies to specific grants/projects. Special need
is also only evaluated if a county (or jurisdictional boundary) does not meet one of the first two
criteria.
Generally, the EDA would consider granting this determination if the area was recently impacted
by loss of jobs due to a closure or lay-offs of a significant employer in the area (because the
unemployment data would not reflect these impacts yet), or other significant events such as the
closure of a military base or a significant natural disaster. If a county or municipality wanted to
get qualified as an EDA and does not met the first two criteria, they would have to make their
case to the regional EDA office with any supporting information they can provide. As this is a
timely process, it may not be helpful with the selection of ARRA projects.
In the Economic Development Administration's latest Announcement of Federal Funding
Opportunity (http://www.eda.gov/PDF/FY09ARRAFFOFINAL031309.pdf), they define Other
Special Need Criteria as follows:
VII. Special Need Criteria Information
The following criteria are published in accordance with 13 C.F.R. §301.3(a)(1)(iii) and define
what may constitute a “Special Need” (as defined in 13 C.F.R. § 300.3) sufficient to make a
project eligible for Public Works or Economic Adjustment investment assistance, as described in
section III.B.of this announcement. Only applications for Public Works or Economic
Adjustment investment assistance may be found eligible under a “Special Need,” and EDA will
determine the maximum allowable investment rates for such projects. The applicant will be
asked to present appropriate economic or demographic statistics to demonstrate a “Special
Need.” A project is eligible pursuant to a “Special Need” if the project is located
in a region that meets one of the criteria described below:
1. Closure or restructuring of industrial firms or loss of a major employer essential to the
regional economy. A region has experienced either: (1) an actual closure or restructuring of a
firm(s) within the past twelve (12) months prior to application, resulting in sudden job losses and
meeting the following dislocation criteria; or (2) a threat of closure that results from a public
announcement of an impending closure or restructuring of a firm(s) expected to occur within two
(2) years of application and result in sudden job losses meeting the following dislocation criteria:
a. For regions with population over 100,000, the actual or threatened dislocation is 500 jobs, or
one (1) percent of the civilian labor force (CLF), whichever is less.
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b. For regions with population up to 100,000, the actual or threatened dislocation is 200 jobs, or
one (1) percent of the CLF, whichever is less.
2. Substantial out-migration or population loss. Applicants seeking eligibility under this criterion
will be asked to present appropriate and compelling economic or demographic data to
demonstrate the special need.
3. Underemployment, meaning employment of workers at less than full-time or at less skilled
tasks than their training or abilities permit. Applicants seeking eligibility under this criterion will
be asked to present appropriate and compelling economic and demographic data to demonstrate
the special need.
4. Military base closures or realignments, defense contractor reductions-in-force, or Department
of Energy defense-related funding reductions.
a. A military base closure refers to a military base that was closed or is scheduled for closure or
realignment pursuant to the base closure and realignment process or other Department of
Defense (DOD) process. Unless further extended by the Assistant Secretary, the region is
eligible from the date of DOD’s recommendation for closure until five (5) years after the
actual date of closing of the installation.
b. A defense contractor reduction-in-force refers to a defense contractor(s) experiencing defense
contract cancellations or reductions resulting from official DOD announcements and having
aggregate value of at least $10 million per year. Actual dislocations must have occurred within
one year of application to EDA and threatened dislocations must be
anticipated to occur within two (2) years of application to EDA. Defense contracts that expire in
the normal course of business will not be considered to meet this criterion.
c. A Department of Energy defense-related funding reduction refers to a Department of Energy
facility that has experienced or will experience a reduction of employment resulting from its
defense mission change. The area is eligible from the date of the Department of Energy
announcement of reductions until five (5) years after the actual date of reduced operations at the
installation.
5. Natural or other major disasters or emergencies, including terrorist attacks. Unless further
extended by the Assistant Secretary, a region that has received one of the following disaster
declarations is eligible to apply for EDA assistance for a period of 18 months after the date of
declaration:
a. A Presidentially Declared Disaster declared under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act, as amended (42 U.S.C. § 5121 et seq.); or
b. A Federally Declared Disaster pursuant to the Magnuson-Stevens Fishery Conservation and
Management Act , as amended (16 U.S.C. § 1861a(a)); or
c. A Federally Declared Disaster pursuant to the Consolidated Farm and Rural Development
Act, as amended (7 U.S.C. § 1961); or
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d. A Federally Declared Disaster pursuant to the Small Business Act, as amended (Pub. L. No.
85-536, 72 Stat. 384 (1958)).
6. Extraordinary depletion of natural resources.
7. Communities undergoing transition of their economic base as a result of changing trade
patterns. An area certified as eligible by the North American Development Bank (NADBank)
Program or the Community Adjustment and Investment Program (CAIP).
8. Other special need. The area is experiencing other special or extraordinary economic
adjustment needs, as determined by the Assistant Secretary.
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