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089549 1 (1976-08-11)

handle is hein.gao/gaobacvot0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D C 20548 COMMUNITY AND ECONOMIC DEVELOPMENT DIVISION AUG 111976 Mr. Norbert T. Tiemann Administrator, Federal Highway Administration Department of Transportation Dear Mr. Tiemann: During our survey of thefuse of Federal-aid Urban System funds for mass transit, we noted some matters in the States' allocations of funds to the urbanized areas and the subsequent suballocations of funds to municipalities within the areas which warrant your attention. Although we plan a report to the Congress concerning the limited use of Urban System funds for transit, we are presenting this information separately for your consideration and appropriate actions We conducted our survey at the headquarters offices of the Federal Z Highway and the Urban Mass Transportation Administrations and at their field offices, State highway departments, and selected local organizations in five States--California, Illinois, Nevada, New Jersey, and New York ALLOCATIONS TO URBANIZED AREAS The Federal-aid Urban System is located in each urbanized area and other urban areas designated by State highway departments and consists of arterial and collector routes, but does not include urban extensions of the Federal-aid Primary System Urban System funds can be used for highway projects on the system or for transit projects. Section 157 of the Federal Aid Highway Act of 1973 (23 U.S C. 150), requires States to allocate Urban System funds to urbanized areas of 200,000 or more population by either (1) a fair and equitable formula developed by the State and approved by the Secretary of Transportation or (2) a population ratio. In February 1974, the Illinois Department of:Transportation proposed to allocate the State's Urban System apportionmhnt, except for a 10 percent discretionary reserve, to each urbanized area according to proportional population. The Highway Administration disapproved the formula in July 1974

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