Abstract
The Kentucky Transportation Cabinet (KYTC) has developed several tools and methods to compare the value of proposed projects within specific programs and asset classes, including the Enhanced Bridge Prioritization Index, Enhanced Pavement Prioritization Index, and the Strategic Highway Investment Formula for Tomorrow (SHIFT). Although immensely valuable, these methods and tools do not offer a convenient way of comparing the contributions of individual projects to meeting overall KYTC performance goals. As such, the Cabinet needs a robust mechanism for comparing the impact of projects across its capital, safety, and asset management programs. Following a review of cross-asset allocation frameworks described in academic literature and implemented at state transportation agencies, this report proposes that KYTC adopt the asset sustainability ratio (ASR) to facilitate project- and programmatic-level comparisons for bridges and pavements only; further development is needed to implement capital and safety. The ASR is a ratio that captures the amount of work completed by a program area to the amount of work needed to maintain a transportation network in its current condition. An ASR = 1 means a network is being preserved in its current condition; values < 1 indicate deterioration. Determining the budget levels needed to achieve an ASR of 1 is highly dependent on the types of projects being considered. A worst-first approach that emphasizes replacements will require higher spending levels than a strategy that emphasizes lower cost preservation treatments. With this in mind, researchers analyzed different potential bridge portfolios to determine a reasonable range of budget needs for KYTC’s bridge program. Budget needs ranged between $383M and $673M depending on the project portfolio. This range is much higher than the current budget of approximately $189 million. While it is possible to evaluate many combinations of funding levels, the number of potential scenarios should be limited so that decision making is tractable.
Report Date
7-2024
Report Number
KTC-24-28
Digital Object Identifier
https://doi.org/10.13023/ktc.rr.2024.28
Repository Citation
Wilcoxson, Jon; Gibson, Bryan; and Paris, Bethany, "Developing a Cross-Asset Allocation Mechanism" (2024). Kentucky Transportation Center Research Report. 1810.
https://uknowledge.uky.edu/ktc_researchreports/1810
