Highway Demonstration Projects

Improved Selection and Funding Controls Are Needed Gao ID: RCED-91-146 May 28, 1991

Pursuant to a congressional request, GAO evaluated 66 Surface Transportation and Uniform Relocation and Assistance Act of 1987 (STURRA) demonstration projects in 8 states, focusing on: (1) their relationship to state and regional transportation plans; (2) progress and problems encountered in implementing such projects; (3) their estimated costs and impact on other highway project funding; and (4) options for consideration if Congress includes demonstration projects in the 1991 federal-aid highway program reauthorization.

GAO found that: (1) the demonstration projects generally did not respond to states' and regions' most critical federal-aid highway needs and were generally not included in state or regional transportation plans; (2) although $549 million were authorized for the 66 projects, only $198 million were obligated by 1991; (3) some of the unobligated funds may never be used due to the need for preliminary project development work, and provisions for recapturing or redirecting the funds; (4) funds needed to complete the 66 projects exceeded the federal authorized funds and the anticipated state matching funds; (5) reasons for funding shortfall included unreliable cost estimates, inflation, and the fact that federal funds were never intended to cover the complete cost for 23 projects; and (6) if states had received 1987 demonstration project funds on the basis of their percentage share of federal aid highway program allocations, 35 states would have received an equal or greater share of highway funds.

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.

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