TPO begins FY2026–29 TIP update; staff proposes 10% contingency and stricter overrun review

The Knoxville Regional Transportation Planning Organization Technical Committee on Jan. 14 reviewed the draft schedule, funding assumptions and policy tweaks for the Fiscal Year 2026–2029 Transportation Improvement Program (TIP), with staff proposing a return to a 10% contingency reserve and clarifying when cost overruns must be brought to the committee.

The draft schedule calls for a project call to open the week of Jan. 17 and run through the end of February, staff review and project scoring tied to the 2050 Mobility Plan, TDOT submittal of draft TIP projects in May, federal review over the summer, and targeted local adoption in October; the TIP would take effect in January of calendar year 2026 when the new program becomes operational.

The TIP update matters because it programs federal and state transportation funds for regionally significant roadway and transit projects and establishes policies that affect which projects move forward and how cost changes are handled.

At the Jan. 14 meeting Craig Conger, TPO staff, presented top‑level funding figures staff used for initial programming: approximately $126,000,000 available through the Surface Transportation Block Grant (LSTBG/STBG) program, about $12,000,000 in TAP (Transportation Alternatives Program) funds, and roughly $9,300,000 in Carbon Reduction Program funds. Conger said staff will also encourage submissions that could be eligible for CMAQ/PM 2.5 funds, although TDOT has asked TPO partners to initially program only NEPA and design phases for CMAQ projects until later phases are ready for obligation.

Conger described proposed policy tweaks: (1) delayed‑project reporting tied to a twice‑annual project‑tracking meeting (changed from quarterly reporting); (2) increasing the program contingency reserve target from 9% back to 10% of overall revenue to better cover cost overruns across the program; and (3) a formal threshold requiring technical‑committee review for cost overruns above either 15% of a project’s total cost or an increase of federal funds greater than $500,000, with smaller overruns handled administratively. He said the 10% figure would be applied across phases and that staff will revise numbers as available funding figures are finalized.

Committee members asked whether the executive board could override the contingency or overrun rules; Conger clarified that cost‑overrun approvals are processed through the technical committee (this body) and that if an overrun made the TIP fiscally unconstrained staff and the sponsor would have to identify offsets, local funds or move other projects. TDOT’s Troy Evert joined the discussion about statewide programs and funding availability, and members discussed the potential to reflect State Project Prioritization (SPP) awards in the TIP or modify the existing TIP later if the state displaces local funds.

Conger told the committee that forms for rollovers (existing projects) and new projects will resemble the prior cycle’s forms and that staff will host a workshop after the meeting with more detail on the project call and scoring. He also noted one procedural change: TDOT guidance on CMAQ obligating delays means the TPO should generally program only NEPA/design now for new CMAQ‑funded projects and add right‑of‑way and construction phases later as those phases become ready for obligation.

No formal committee action was taken on the proposed policy changes during the Jan. 14 meeting; Conger said staff would proceed with the 10% contingency direction absent objections and would return revised figures and the detailed project call at follow‑up meetings and workshops.

Looking ahead, Conger emphasized that TIP adoption will follow federal and state review and that the new TIP would be operational in calendar year 2026. He reminded jurisdictions that staff will accept and score project submissions during the announced call and will work with TDOT on programming authority and potential statewide swaps as needed.