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Transportation Policy and

Performance:The challenges and opportunities of

performance-based programs

Deputy Administrator Therese McMillanFederal Transit Administration

March 1, 2010

Next Authorization: Why Measuring Performance Will Be Key

• Demonstrate accountability

• Measure progress

• Respond to flexible, multiple mode funding environment

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Measuring Performance Requires Answering Key Questions

• How many measures?

• Quantitative or qualitative?

• Outcomes and/or outputs?

• Fixed threshold or directional?

• Incentives or penalties?

A Single Measure Does Not Capture The Whole Story

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Summary Rating

Project Justification Rating

Financial Rating

Non-Section5309 Share

(20%)

Capital Finances

(50%)

Operating Finances

(30%)

Other Factors

Mobility Improvements

(20%)

Environmental Benefits

(10%)

Operating Efficiencies

(10%)

Cost Effectiveness

(20%)

Land Use

(20%)

Economic Development

(20%)X X X X X

X_

100 %

Former New Starts Funding Decision Rule

The Multiple Measure Approach Provides a More Robust Assessment

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Summary Rating

Project Justification Rating

Financial Rating

Non-Section5309 Share

(20%)

Capital Finances

(50%)

Operating Finances

(30%)

Other Factors

Mobility Improvements

(20%)

Environmental Benefits

(10%)

Operating Efficiencies

(10%)

Cost Effectiveness

(20%)

Land Use

(20%)

Economic Development

(20%)

Current New Starts Funding Decision Rule

Example: FTA’s “STIC” Program is Based on Performance

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Each factor plays into how much funding a transit agency receives.

Example: US DOT TIGER Grants

• Projects selected based upon long-term outcomes State of Good Repair

Economic Competitiveness

Livability

Sustainability

Safety

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Example: Partnership for Sustainable Communities

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GuidingPrinciples

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Sustainable Communities Partnership: Potential Ideas

Goal: Transportation Choices

Increase in transit, walk, bike share of trips

Change in vehicle miles traveled per capita

Percent of new homes built within a ½ mile of high capacity transit service

Goal: Economic Competitiveness

Percent of employment within a ¼ mile of high capacity transit services

Increase in residential units within or close to major employment centers

Goal: Equitable Affordable Housing

Increased supply of affordable homes and rental units within a ½ mile of high capacity transit service

Decrease in household transportation costs

Percent of low income households within a 30 minute transit commute of major employment centers

Goal: Support Existing Communities

Share of new residential and commercial construction on previously developed parcels

Decrease in impervious surface per capita

Goal: Leverage Federal Investment

Shared elements in regional transportation, housing, water, and air quality plans tied to local comprehensive land use or capital improvement plans

Dollars of private sector investment within 1/2 mile of high capacity transit

Goal: Value Communities

Decrease in transportation-related CO2, PM NOx VOC emissions per capita

Increase in acres of public recreation and park land per capita

Sustainable Communities Measures Highlights Data Challenges

• Does the data currently exist?

• What is the quality and reliability?

• Who collects and through what mechanism?

• How much burden is data collection?

• Are there unintended consequences?

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Wrap Up: Now What?

• Performance-based programs are coming (are already here!)

• Data questions need to be addressed

• Implementation tactics need to be determined

• Questions/comments?

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