1. (a) Using the Commission's adopted methodology, the Department will develop and submit to the Commission by October 1 of each year recommended annual and five-year estimates of all Federal and State funds available for transportation purposes, not including Federal discretionary grants or funds.

   The Department will also use the methodology to estimate the amount of these funds reasonably expected to be available to each RTPA for highways, public mass transit guideways, and aeronautics projects to be funded through the Acquisition and Development (A & D) Program.

2. (b) In addition to the estimates required by Subsection (a), the fund estimate will include this information:

   1. (1) The minimum statewide expenditure level for rehabilitation projects in the STIP allowed by the Commission's methodology;
   2. (2) The revenue, for each year and fund type, in excess of the amount needed to fund the projects in the adopted STIP, after the project costs have been adjusted for new estimates of inflation and delivery dates;
   3. (3) The division of these excess revenues, undifferentiated by fund type and year, to the north and south county groups that will achieve the allocation of State Highway Funds required by Section 188 of the Streets and Highways Code;
   4. (4) The threshold between major and minor projects. Major projects will be all projects whose estimated costs (excluding right-of-way and engineering costs), as measured in escalated dollars, exceed the threshold.
3. (c) After reviewing, the Department's proposed fund estimate, and revising as necessary, the Commission will adopt and provide copies of the fund estimate to the RTPAs and county transportation commissions by November 1.

The Commission, in consultation with the Department, RTPAs, and the county transportation commissions will adopt a methodology for estimating funds that will be available for the five-year STIP.

Note: Authority cited: Section 14532, Government Code. Reference: Section 14524, 14525, Government Code.