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Section 2: EDCP Requirements

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Definition of Economically Disadvantaged County

An economically disadvantaged county is a county that, in comparison to other counties in the state, has:

TxDOT identifies the counties that meet all three of the above criteria derived from data obtained from the Texas Comptroller of Public Accounts on an annual basis or, a county that has met the 3 criteria within the past six years and has been included in no less than five federally declared disasters within the same time obtained by the Federal Emergency Management Agency. These counties are eligible for the program during the fiscal year in which they are determined eligible. Since the list is updated every fiscal year, a county may be eligible one year and not the other, or vice versa.

The most current data available for each of the criteria precedes the current fiscal year by three years. For example, data used to compile the list of eligible counties for Fiscal Year (FY) 2018 is from Calendar Year 2015.

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Project Eligibility

Both on-system and off-system highway improvement projects in a county are eligible for some relief of the local match requirement. However, on-system projects are required to be both commission-authorized (i.e. the project must be in the Unified Transportation Program) and not let to contract. Off-system projects must have a Federal/Local required participation, be commission-authorized or approved within a district bank balance program and not let to contract. If a project meets the requirements, the second factor to consider is the project components.

Most highway projects involve four project components that carry a cost and participation ratio. The four common components are:

The local match requirements for each of the above components vary based on the project’s funding category. Most components that require a local match are eligible for some relief with a few notable exceptions:

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  1. Right of way and utility costs on off-system projects are not eligible for an adjustment.
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  3. Non-roadway items on off-system projects funded under any category are not eligible for an adjustment. These include items such as storm sewers, curb and gutter, driveways. In addition, activities which do not involve or lead directly to construction, such as feasibility studies, planning and research, engineering to define elements of a proposed action or alternatives so that social, economic, and environmental effects can be assessed, are not eligible.

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  5. Off-roadway projects such as recreation trails and hike and bike paths not adjacent to a roadway (typically eligible for federal Transportation Alternatives funding) are not eligible.
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  7. Additionally, the local participation requirements for some projects are project specific as detailed in the project’s minute order.

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Relief Available for Eligible Projects

While the amount of relief granted is at the Texas Transportation Commission’s discretion, the commission has not deviated from the adjustments recommended by TPP. TPP recommends adjustments based on a percentage formula developed by the Finance Division. The formula serves as a measure of a local government’s “effort” and “ability” to provide their local match for projects.

Cities within an economically disadvantaged county may receive higher percentage adjustments beyond their respective county’s adjustment under two conditions: if they have a local economic development sales tax and their population is less than 5000. A city within an economically disadvantaged county receives an adjustment equal to the adjustment for the county in which it is located, with the possibility of up to 10 additional percentage points based on its population and the existence of an economic development sales tax. An adjustment cannot exceed 95 percent in total (including percentage points for economic development sales tax) or be less than 15 percent.

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