Highway Right-of-Way Program Administration by Wisconsin and Michigan and the Federal Highway Administration

GAO selected two states with large right-of-way acquisition programs that are active in federal aid revolving fund, property management, or property disposal programs in order to determine whether: (1) the Federal Highway Administration (FHwA) is effectively administering the right-of-way acquisition funds; and (2) states are effectively using the land acquired for rights-of-way in their highway construction programs.

GAO found that several weaknesses in the administration of the program exist in the states reviewed. Wisconsin did not promptly return to the federal government several million dollars in revolving fund advances used to acquire land for projects that would not be built within the 10-year time limit for construction. In Michigan, construction did not begin within the 10-year time limit on right-of-way projects for which it received approximately $2 million in regular federal-aid funds. In both states, land was erroneously acquired under the requirement to purchase uneconomic remnants. GAO concluded that, in cases where projects are not progressing and will not be built within the 10-year time limit for construction, FHwA should not wait until the expiration of the time limit before requiring the state to either repay the funds or justify retaining them. Although regulations are not specific as to when the time limit expires and extensions may be granted, GAO believes that the state should be required either to formally request an extension or to refund the federal funds. GAO also found that Michigan and Wisconsin accumulated a large inventory of excess land and that it had been erroneously charged to the federal government. FHwA has successfully made efforts to correct the improper charges.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Oliver W. Krueger Team: General Accounting Office: Community and Economic Development Division Phone: (202) 275-5514