TPO presents draft FY26–29 TIP revenues, programming changes and new project entries

Craig, a TPO staff presenter, gave the executive board an update May 28 on development of the FY26–29 Transportation Improvement Program (TIP), describing revenue projections, a revised project programming list, and policy tweaks aimed at addressing cost overruns and fiscal constraint.

The TPO plans to update the TIP every three years and is preparing a draft for TDOT review in June, with the board expected to consider a draft document in July and adopt a final TIP in October. Craig said the region’s TPO‑directed revenue programs include LSTBG (the largest), TAP (Transportation Alternatives Program), and the Carbon Reduction Program. He cited projected federal LSTBG revenue of about $120 million across the four‑year period, TAP about $12.4 million and carbon reduction about $10.9 million, plus roughly $65 million in carryover to start fiscal 2026.

Craig said initial project requests exceeded available LSTBG revenues and staff worked with local partners to adjust schedules and move construction phases that were unlikely to be deliverable in the TIP years. The revised LSTBG requests are roughly $89.2 million after schedule adjustments. The TPO is proposing a formal contingency reserve of 10% for TPO‑derived funds (it moved from 5% to 9% in the prior cycle and will formalize 10% now), and the draft shows positive year‑end balances across the four years, which staff said could allow adding project phases mid‑cycle if schedules accelerate.

Staff also proposed small policy changes: shifting project tracking reports from quarterly to twice annually to match local sponsor/TDOT meeting cadence; formalizing a 10% contingency reserve; and documenting CMAQ programming practice where NEPA and design phases may be programmed earlier but construction phases are reserved until the phase is ready to proceed. Craig noted the region is also including PM2.5‑directed funds and consulting with TDOT for oversight because the Knoxville region is currently the state’s PM2.5‑eligible area.

Board members asked clarifying questions about reconnecting communities grant projects included in the draft TIP and about how the TPO is handling inflation assumptions and cost overruns. Craig said reconnecting communities projects are included based on current assumptions pending confirmation, and that inflation adjustments are applied to federal amounts in the project table in the board packet. He reiterated the schedule for TDOT review, board consideration and federal approval following adoption.

No formal vote was taken; the item was presented as an informational update and staff will return with draft documents for review and adoption later in the summer and fall.