SEAGO receives approximately $1,525,000 in federal highway construction and safety funds each year for the Transportation Improvement Program, or TIP. These funds are awarded to SEAGO members on a competitive basis, and once the SEAGO Executive Board approves a project, it is placed on the TIP. Use of these funds requires a 5.7 percent cash match from the recipient.
Funding for the SEAGO TIP comes from federal Surface Transportation Program (STP) and Highway Safety Improvement Program (HSIP) funds and varies from year to year. This funding is discretionary on the part of ADOT, and is based on a formula derived by ADOT using current population estimates. The funding also varies in accordance with the Obligation Authority (OA) provided to ADOT each year by the Federal Highways Administration (FHWA). This OA percentage has varied from 85 percent to 105 percent, depending on the perceived need to reduce the federal deficit.
All highway and transit projects in the state, funded under Title 23 and the Federal Transit Act, must be included in a federally approved STIP. Projects in the STIP must be consistent with the statewide long-range transportation plan and metropolitan transportation improvement programs (TIPs).