REAUTHORIZATION LANGUAGE

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• REAUTHORIZATION LANGUAGE

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REVENUE ALIGNED BUDGET AUTHORITY (RABA)

• Highway funding levels are based on estimates.
• Estimated funds are adjusted annually.
• The annual calculation of this adjustment is
  called the Revenue Aligned Budget Authority or
  RABA.
• RABA was intended to ensure that highway funding
  tracks closely with actual and anticipated
  revenue.

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FIREWALLS

• TEA-21 provided specific budget categories for
  highway and transit discretionary spending.
• A budgetary firewall was created between those
  programs and all other domestic discretionary
  programs.
• Before TEA-21, the highway and transit
  discretionary programs competed for annual budget
  resources with most other domestic programs.

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STREAMLINING

• This term is often used in connection with the
  environmental review process.
• The idea is to simplify and make the process more
  efficient.
• Process improvement will allow for more timely
  completion of projects while protecting our
  environment.

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EARMARK

• In both ISTEA and TEA-21, Congress left a certain
  amount of funding for state or regional projects.
• During reauthorization, a specific project could
  be identified for funding in the bill.
• This process is called an earmark or earmarking.

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HIGH PRIORITY PROJECTS

• A program within TEA-21 which identifies and
  funds specific projects.
• The funding level for each high priority project
  is specified.
• Funding can only be used as described by law.

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AUTHORIZATION VERSES APPROPRIATIONS

• An authorization act establishes a program or
  agency.
• An appropriations act allows an agency to incur
  obligations and make payments.

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OBLIGATION AUTHORITY

• A provision by Congress allowing an agency to
  obligate federal funding each year.
• Obligations limitations are the maximum amount
  that may be obligated.

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MINIMUM GUARANTEE

• A minimum level of funding guaranteed to the
  states.
• 90.5 is the current TEA-21 minimum guarantee to
  the states.

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DONOR/DONEE

• States contribute funds to the Federal Highway
  Trust Fund.
• Federal funds are redistributed back to each
  state.
• Donor - a state which receives less money for the
  year than the state provided to the Highway Trust
  Fund
• Donee - a state which receives more money for the
  year than the state provided to the Highway Trust
  Fund.

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INDEXING

• Indexing is an adjustment to the tax rate to
  reflect inflation.
• Generally, indexing uses the Consumer Price Index
  (CPI) as the adjustment factor