Optimal Fund-Allocation Analysis for Multidistrict Highway Agencies

Abstract

Allocation of funds for multidistrict highway agencies has traditionally been decided by the central administration based on predetermined criteria or formulas along with some consultation with regional agencies. In many cases, the consultation process with regional agencies is limited and ineffective. Such consultations are important because different regions tend to have different priorities, and the state of development and situations of their respective road networks are likely different. Applying a common formula and basis for funds allocation may not achieve the best results for all the regions and the entire network as a whole. This paper employs the genetic-algorithm (GA) optimization technique to allocate the total funds available to the district or regional agencies in order to best achieve specified central and regional agencies’ goals subject to operational and resource constraints. The fund allocation problem considers the overall objective of the central agency together with a goal specified by each district or regional agency. The practicality of the solution procedure is demonstrated with a simple pavement maintenance fund allocation problem of a three-region management structure administered by a central highway agency, and with different goals or objectives specified by the central and regional authorities. The performance of the proposed procedure, in terms of network pavement conditions, is compared to that of typical funds allocation approaches. The proposed two-stage GA procedure is shown to outperform typical traditional allocation systems.