For several years, the Transportation Research Board Committee on Statewide Multimodal Transportation Planning Peer Exchange has sponsored an annual peer exchange with the support of the Federal Highway Administration (FHWA). The exchange creates an informal setting in which committee members who are state transportation planners and other invited guests can share current issues and approaches to the development and implementation state transportation plans (STPs). The purpose of the meeting is to advance the practice of statewide transportation planning by direct sharing of innovative approaches and to generate ideas for needed research. The 2002 peer exchange program was organized into three distinct parts. First, on the of the peer exchange participants shared the main issues facing their statewide transportation planning program in a casual discussion format. The conversation set a tone of openness and frankness that continued throughout the peer exchange. The second segment of the peer exchange was a discussion of fiscal constraint and financial planning issues. Each state department of transportation (DOT) representative was asked to answer the following set of questions prior to coming to the peer exchange: - How do you address financial planning in your statewide planning process? - How does your statewide plan document financial planning issues? - How do you demonstrate fiscal constraint in your State Transportation Improvement Plan (STIP)? - How does the current fiscal/economic environment play into your long-range statewide planning and programming process(es)? - What, if any, performance measures that you may use have a financial basis?