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U.S. Department of Transportation U.S. Department of Transportation Icon United States Department of Transportation United States Department of Transportation

N 4520.140

Notice
Subject
FEDERAL-AID HIGHWAY PROGRAM OBLIGATIONS - FISCAL YEAR (FY) 1996
Classification Code Date  
N 4520.140 December 4, 1995  

 

  1. PURPOSE. To advise of the limitation on Federal-aid highway program obligations for fiscal year (FY) 1996 and the distribution of this limitation among the States.
  2. LIMITATION - LEGISLATIVE PROVISIONS. Public Law 102-240 and, the Department of Transportation and Related Agencies Appropriations Act of 1996, (Public Law 104-50) provides for the limitation of obligations as follows:
    1. Obligations for Federal-aid highways are limited to $17,550,000,000 for FY 1996.
    2. This limitation shall not apply to obligations for projects covered under:

      (1) Sections 125, and 157, of Title 23, United States Code (23 U.S.C.);

      (2) Section 147 of the Surface Transportation Assistance Act of 1978;

      (3) Section 9 of the Federal-Aid Highway Act of 1981;

      (4) Obligations to carry out the provisions of Sections 131(b) and 131(j) of the Surface Transportation Assistance Act of 1982 (Public Law 97-424);

      (5) Section 404 of the Surface Transportation Assistance Act of 1982 (P.L. 97-424);

      (6) Sections 1103 through 1108 of the Intermodal Surface Transportation Efficiency Act of 1991;

      (7) Obligations of funds made available under subsections (b) and © of Section 149 of theSurface Transportation and Uniform Relocation Assistance Act of 1987.

    3. Each State is guaranteed sufficient authority to prevent lapse of sums authorized to be appropriated for Federal-aid highways which have been apportioned to a State.
    4. Amounts authorized for administration, the Federal Lands Highway Program, the Intelligent Transportation Systems Program, and amounts made available under sections 1040, 1047, 1064, 6001, 6005, 6006, 6023, and 6024 of Public Law 102-240 are charged to the limitation but are excluded from the State-by-State distribution.
    5. After August 1, 1996, the Secretary will revise a distribution of funds made available if a State does not plan to obligate the amount distributed during FY 1996 and redistribute such amounts to those States able to obligate amounts in addition to those previously distributed during FY 1996. The redistribution will give priority to those States having large unobligated balances of funds apportioned under 23 U.S.C. 103(e)(4), 104, 144 and 1013© and 1015 of Public Law 102-240.
    6. Redistribution of FY 1996 authority reserved for Federal lands and Headquarters controlled programs. Any funds not obligated by July 31, 1996, will be withdrawn and made available for August Redistribution. If Federal Lands and Headquarters offices need any amounts that are withdrawn to be restored, they should include the amount in their request as part of the August Redistribution process.
    7. After August 1 and on or before September 30, 1996, a State which obligates the amount distributed in FY 1996 under the distribution based on apportioned and allocated funds, as well as any redistribution amounts made available after August 1, 1996, may obligate for Federal-aid highways and highway safety construction on or before September 30, 1996, an additional amount. The aggregate amount which may be obligated by all States under this additional obligation authority cannot exceed 2.5 percent of the aggregate amount of funds apportioned or allocated under sections 104 and 144 of 23 U.S.C.; and 1013© and 1015 of Public Law 102-240 which would not be obligated in FY 1996, if the total amount of obligational authority were utilized. No State may utilize this additional obligational authority that does not utilize all obligation authority distributed to it for FY 1996 or does not utilize all additional obligation authorityredistributed to it after August 1. In addition, this provision will not apply to any State releasing formula obligation authority for the August redistribution.
    8. Funds apportioned for FY 1996 to the States during FY 1996 have been used to determine the factors for making a State-by-State distribution of the obligation limitation. The State-by-State distribution of the FY 1996 obligation limitation is shown on Attachment 1.
    9. During the period October 1 through December 31, 1995, no State shall obligate more than 25 percent of the amount of obligation limitation distributed to such State, and the total of all State obligations during such period shall not exceed 12 percent of the total amount distributed to all States. The State-by-State distribution of the FY 1996 obligation limitation is shown on Attachment 1.
    10. Special 1st Quarter Limitation. During the period October 1 through December 31, 1995, the aggregate amount of obligations under section 157 of 23 U.S.C., section 147 of the Surface Transportation Assistance Act of 1978; section 9 of the Federal-aid Highway Act of 1981; sections 131(b), 131(j) and 404 of Public Law 97-424; sections 1061, 1103 through 1108, 4008, and 6023(b)(8) and (10) of Public Law 102-240 and Public Law 100-17, shall not exceed $277,431,840. The distribution to the States has been made based on the September 30, 1995, unobligated balances of the affected programs plus the FY 1996 Minimum Allocation apportionment and ISTEA Demonstration Projects allocations. The amount for each State is shown on Attachment 2.
  3. DISCRETIONARY AND/OR OTHER NON-FORMULA FUNDS. Obligational authority is reserved for discretionary and/or other non-formula funds estimated to be allocated during the fiscal year. Obligational authority will be distributed with each allocation of funds during FY 1996 at 100 percent. During the first quarter 12 percent of the limitation will be provided with allocations to the States. The remaining limitation will be available after December 31, 1995. Such allocations increase the total annual limitation to each State for FY 1996.
  4. FEDERAL LANDS PROGRAM. The obligational authority for the Federal Lands Highway program has been reserved from distribution. Distribution of the reserved authority will be made by the Federal Lands Highway Program Office.
  5. TERRITORIAL HIGHWAY PROGRAM. Obligational authority for the Territorial Highway Program has been reserved from distribution. Distribution of the reserved authority willbe made by the Associate Administrator for Program Development.
  6. TOTAL LIMITATION. Obligation authority available for distribution in FY 1996 is greater than the total apportionments and allocations for the year on which the distribution is based. The pro rata share of 105.4 percent is available for distribution with apportioned (formula) funds. Allocated (non-formula) funds will be distributed with obligation limitation of 100 percent. Attachment 1 shows each State's share of the limitation distributed by formula and the amount reserved for non-formula programs.
  7. FUNDS SUBJECT TO FY 1996 LIMITATION. Obligation of the funds shown on Attachment 3 are chargeable to the FY 1996 limitation. Also shown are funds exempt from the limitation.
  8. FUNDS SUBJECT TO SPECIAL FIRST QUARTER LIMITATION. Attachment 4 contains a listing of the appropriation codes subject to the Special First Quarter Limitation.
  9. ACTION
    1. Division Administrators should ensure that copies of this Notice are furnished to State Highway Agencies.
    2. By December 11, 1995, each State shall advise the Division Administrator of (1) the amount it can obligate in excess of its 12 percent share (up to a maximum of 25 percent) or, (2) the amount that can be released during the first quarter for obligation by other States. The response shall be forwarded by the Division Administrator to the regional office. By December 13, each Regional Administrator shall advise Washington Headquarters, HFS-30, on a State-by-State basis of the additional authority required or the amount that can be released for obligation by other States. Upon review of the regional reports, Washington Headquarters will advise of the redistribution, if any, of the first quarter obligation authority. Any redistribution in the first quarter will not change the total FY 1996 distribution of limitation to each State.
    3. By December 11, 1995, each State shall advise the Division Administrator of the Special Limitation amount it can obligate in excess of its share or the amount that can be released during the first quarter for obligation by other States. The response shall be forwarded by the Division Administrator to the regional office. By December 13, each Regional Administrator shall advise Washington Headquarters, HFS-30, on a State-by-State basis of the additional authorityrequired or the amount that can be released for obligation by other States. Upon review of the regional reports, Washington Headquarters will advise of the redistribution, if any, of the first quarter obligation authority.

 

/s/
A. R. Kane
Executive Director
Last updated: Monday, December 4, 1995