This project performed extensive study and systematic research on the application of the Highway Development and Management system (HDM-4) to the Washington State Department of Transportation (WSDOT) highway system. Data processing, testing, calibration, and analysis were executed to provide the WSDOT with a new budget planning tool. HDM-4 flexible pavement deterioration models were calibrated with the assistance of the Washington State Pavement Management System. A method to calibrate concrete pavement deterioration models is proposed. This research also explored the application of HDM-4 analysis at the project, program, and strategic levels. The applications include prediction of pavement conditions during a defined analysis period, calculation of required budgets for optimal pavement conditions and maximum economic indicators, establishment of optimized work programs under varying levels of constrained budgets, and other applications for WSDOT.