This thesis develops the multidimensional resource allocation models to prioritize the freight improvement projects. Multiple dimensions of the model include transportation modes, performance measures, improvement types, geographical regions, policy criteria, and planning horizon. The total benefits is maximized subject to budget, policy, and other constraints. Four models are developed based on four different policies including economic competitiveness with and without mutual exclusiveness in location, equity in opportunity, and equity in outcome. Models are compared with each other as well as a non-optimization model, where resources are allocated based on maximum benefits. The models are applied in the state of Tennessee considering two modes, three improvement types consisting of over 2000 projects in 51 counties, and a 10-year planning horizon. The results show that the project selection based on equity in outcome provides total benefits that are very close to the maximum and still provides equitable distribution of these benefits. .

TRB's National Cooperative Highway Research Program (NCHRP) Report 666: Target Setting Methods and Data Management to Support Performance-Based Resource Allocation by Transportation Agencies - Volume I: Research Report, and Volume II: Guide for Target-Setting and Data Management provides a framework and specific guidance for setting performance targets and for ensuring that appropriate data are available to support performance-based decision-making. Volume III to this report was published separately in an electronic-only format as NCHRP Web-Only Document 154. Volume III includes case studies of organizations investigated in the research used to develop NCHRP Report 666.

The research described in this report assembles a set of tools based on experiences and best practices in a diverse set of states for linking strategic goals to resource allocation and implementation decisions using aspects of asset management. A survey of practices in each of the state DOT's that explores documents and synthesizes both strategic planning processes and asset management was conducted. With input from an expert advisory panel, five states were for detailed analysis. These are Florida, Maryland, Michigan, Montana and Pennsylvania. The model process that results does not represent any particular state, but incorporates elements from all five states. This model process can provide useful guidance to states interested in augmenting their existing process.