Through the statewide transportation planning process, states decide how to spend fed. transportation funds -- almost $46 billion in FY 2009. Draft legislation to reauthorize federal surface transportation legislation would, among other things, revise planning requirements to recognize states' use of rural planning org. (RPO) and require performance measurement. This report examined: (1) states' planning activities and RPOs' satisfaction that rural needs are considered; (2) states' planning challenges; (3) the U.S. Dept. of Transportation's approach to overseeing statewide planning; and (4) states' use of performance measurement and opportunities to make statewide planning more performance based. Tables. This is a print on demand report.