OAR 732-042-0010: STIF Formula Fund Calculation and Disbursement

(1) STIF Plan Agreements (a) The Agency may not disburse STIF Formula Fund moneys to a Qualified Entity until the Commission has approved the Qualified Entity’s STIF Plan and the Legislative Fiscal Office and the State’s Chief Financial Officer have determined that there is sufficient revenue in the Statewide Transportation Improvement Fund to fund the STIF Formula Fund disbursements. (b) Upon Commission approval of the Qualified Entity's STIF Plan, the Agency will enter into a STIF Plan Agreement with the Qualified Entity. (c) The STIF Plan Agreement shall contain a remedy provision. For STIF Plans with an effective date on or after July 1, 2027, that remedy provision shall provide for escalating corrective actions for violations of the STIF Plan Agreement. (2) The Statewide Transportation Improvement Fund Formula program shall be distributed pursuant to ORS 184.758 to a Qualified Entity with an approved STIF Plan and an executed STIF Plan Agreement as follows: (a) First, the portion of the fund fixed to the 2019-2021 Biennium Statewide Transportation Fund disbursement, as adjusted by the growth of the overall fund pursuant to ORS 184.758(3), will be distributed to Qualified Entities by a population-based formula described in subsection (5)(a) of this rule to support transit services for older adults and individuals with disabilities. (b) The remainder of the funds shall be distributed to Qualified Entities by the proportion of the taxes collected under ORS 320.550. (3) Estimated Distributions: (a) For distributions under subsection (2)(a) of this rule, the Agency shall distribute the Indexed Minimum to each Qualified Entity unless the Qualified Entity is entitled to a larger distribution based on the population calculation described in section (5) of this rule. (b) For distributions under subsection (2)(b) of this rule, the Agency shall distribute the Indexed Minimum to each Qualified Entity unless the Qualified Entity is entitled to a larger distribution based on the wages calculation described in section (5) of this rule. (4) Estimation of STIF Formula Fund Disbursements: (a) The Agency shall estimate STIF Formula Fund disbursements based on the Agency’s projections of the amount of revenue appropriated to the fund, transit payroll tax to be collected, the Agency’s projections of minimum distributions as described under section (3) of this rule, and the proportionate share calculated for each Qualified Entity in section (5) of this rule. (b) The Agency shall estimate the proportionate share annually. (c) Estimated disbursements are not guaranteed. If revenues in the Statewide Transportation Improvement Fund are less than the Agency’s projections, the Agency may proportionately reduce quarterly payments to Qualified Entities from its estimated disbursements. (5) Calculation of STIF Formula Fund Disbursements: (a) The Agency shall calculate the proportionate share for each Qualified Entity under subsection (2)(a) of this rule by dividing the count of the population located within the boundary of the Qualified Entities’ areas of responsibility, by the total population of the state. (A) The Agency shall use the population estimates calculated by Portland State University pursuant to ORS 190.520 for the basis of the population counts of Qualified Entities, except as to Indian Tribes. (B) Each Indian Tribe that is a Qualified Entity will receive STIF moneys as a share of their tribal population residing in Oregon: (i) Tribal population is defined as the members of each Tribe residing in Oregon; (ii) Each Indian Tribe will provide to the Agency its population residing in Oregon by county of residence; and (iii) The tribal populations will be subtracted from county populations before calculating the population of the Districts and counties. (C) The Agency shall exclude from the calculation of proportionate shares any Qualified Entity that is entitled to the Indexed Minimum under subsection (3)(a) of this rule. (b) The Agency shall calculate the proportionate share for each Qualified Entity under subsection (2)(b) of this rule by dividing the amount of wages paid by employers located within the boundary of the Qualified Entities’ areas of responsibility, by the total amount of the wages paid by employers statewide. (A) The Agency shall use the final wage data collected by the Oregon Employment Department for the prior Calendar Year and reported to the Agency. (B) The Agency shall exclude from the calculation of proportionate shares any Qualified Entity that is entitled to the Indexed Minimum under subsection (3)(b) of this rule. (c) Each fiscal quarter, the Agency shall calculate the quarterly distribution as follows: (A) For the Population-Based Formula: (i) The product of the amount of revenue collected in the preceding fiscal quarter attributed to the STIF Formula Fund for the portion described in section (2)(a), as reduced by the Indexed Minimum distributions required under subsection (3)(a) of this rule and funds held under OAR 732-042-0030, multiplied by the Qualified Entity’s proportionate share calculated in subsection (5)(a) of this rule; or (ii) The Indexed Minimum as determined under subsection (3)(a) of this rule. (B) For the Payroll-Based Formula: (i) The product of the amount of revenue collected in the preceding fiscal quarter attributed to the STIF Formula Fund for the portion described in section (2)(b), as reduced by the Indexed Minimum distributions required under subsection (3)(b) of this rule and funds held under OAR 732-042-0030, multiplied by the Qualified Entity’s proportionate share calculated in subsection (5)(b) of this rule; or (ii) The Indexed Minimum as determined under subsection (3)(b) of this rule. (6) Distribution of STIF Formula Funds to Qualified Entities: (a) The Agency shall disburse STIF Formula Funds to Qualified Entities in quarterly distributions. (b) If more than one Mass Transit District or Transportation District is located within a single county, the Agency shall distribute the moneys to the larger district. (c) A Qualified Entity’s STIF Plan Maximum is the total amount of STIF Formula Fund moneys that the Agency is authorized to disburse to the Qualified Entity during the STIF Plan Period. (d) If there is a significant unexpected shortfall in revenues in the Statewide Transportation Improvement Fund, or if there has been an overpayment in a prior quarter, the Agency may proportionately reduce quarterly payments to Qualified Entities. (e) Qualified Entities are not responsible for satisfying Sub-Recipients’ budgetary shortfalls or remedying delays in funding to Sub-Recipients for any reason beyond the Qualified Entities’ direct control. (f) If a Qualified Entity’s proportionate share of STIF Formula funds calculated under section (5) of this rule is more than the Qualified Entity’s STIF Plan Maximum, the Agency will retain and hold excess moneys for distribution to the Qualified Entity at the beginning of the next STIF Plan period for which the Qualified Entity has a STIF Plan approved by the Commission, unless: (A) The Qualified Entity amends its STIF Plan in accordance with the procedures described in OAR 732-042-0045 ; or (B) The Qualified Entity does not have an approved STIF Plan for two consecutive biennia because the Qualified Entity did not submit a STIF Plan or the Commission rejected its STIF Plan. In either case, the Agency shall release any excess STIF Formula Funds in the manner described in OAR 732-042-0030(2) and (3) . (7) Distribution of STIF Funds from Qualified Entity to Sub-Recipient. (a) For the portion of funds described in subsection (2)(a) of this rule: (A) The Qualified Entity will determine the purposes for which the STIF Formula Fund moneys will be used, in accordance with its STIF Plan; (B) The Qualified Entity may use procedures of its choice to distribute STIF Formula Fund moneys; (C) The Qualified Entity that is a Mass Transit or Transportation District is responsible for funding Projects benefiting older adults and individuals with disabilities both within its boundaries and outside them in the surrounding county(ies); (D) Projects outside the Mass Transit District or Transportation District will receive a proportionate amount of the STIF Formula Fund moneys based on the population outside the Mass Transit District or Transportation District; (E) The proportion is based on population estimates calculated by Portland State University; and (F) The Mass Transit District and Transportation District will report the distribution of STIF Formula Fund moneys in its application to the Agency. (b) For the portion of funds described in subsection (2)(b) of this rule: (A) Qualified Entities shall work collaboratively with Public Transportation Service Providers and other potential Sub-Recipients, as relevant, to develop a method for sub-allocating STIF Formula Fund moneys to Public Transportation Service Providers. The Qualified Entity and Public Transportation Service Providers may collaboratively develop factors used to formulate the sub-allocation method. (B) If the Qualified Entity and Public Transportation Service Providers do not collaboratively develop factors used to formulate the sub-allocation method, the sub-allocation method shall be based solely on the proportionate amount of payroll tax revenue generated within the geographic territory of each Public Transportation Service Provider based on data provided by the Agency. (C) A Qualified Entity shall share all data used to develop the sub-allocation method with each Public Transportation Service Provider and other potential Sub-Recipients, as relevant, included in its STIF Plan. (D) A Qualified Entity that is a Mass Transit or Transportation District which does not share contiguous jurisdictional boundaries with a county shall work collaboratively with Public Transportation Service Providers and other potential Sub-Recipients to develop an estimate of STIF Formula Fund disbursements for those areas of the county(ies) in which the District is located that are outside the District’s own jurisdictional boundaries. (c) The sub-allocation method is not an entitlement to the Public Transportation Service Provider and decision criteria may affect the prioritization of Projects. (8) Qualified Entities shall notify the Agency in writing of any adjustment to the geographic boundaries of their areas of responsibility within thirty days of the effective date of the adjustment. (9) A Qualified Entity shall carry forward all Prior STIF Plan Period funds either by an amendment to a STIF Plan made pursuant to OAR 734-042-0045 or by identifying the funds in a future STIF Plan in a manner consistent with OAR 734-042-0015. (10) Each Qualified Entity is required to spend at least one percent of STIF Formula Fund moneys received each year on Student Transit Services for students in grades 9 through 12, if practicable.