Abstract: Highway network is a vital asset and must be maintained to an acceptable level related to preset objectives. Today’s economical restraints in most countries have led to putting more emphasis on maintenance of existing roads rather than building new ones. It is becoming essential to develop maintenance programs on the basis of goals and objectives that maximize the effectiveness of the already limited funds. In many countries, especially developing countries, preparing maintenance budget is not usually based upon well-conceived goals such as pavement condition, serviceability level, environmental impact or safety. This paper presents a two-fold system aiming at maximizing the utilization of the available maintenance funds. First, the Functional Analysis System Technique (FAST) was utilized to screen alternatives for cost reduction of different maintenance alternatives, through a detailed value engineering analysis of each cost item within each maintenance alternative. The application of this technique indicated that considerable savings (up to 30%, in some cases) can be achieved. Second, an optimization model, Goal Programming (GP), was developed to select the optimum set of maintenance projects at a cost within the allocated budget with maximum achievement of three conflicting goals, namely: (i) pavement surface condition; (ii) serviceability level; and (iii) safety level. The model was extensively applied using different budget levels and performance scenarios. The results indicated that better long-term network performance can be achieved using the GP model, if compared to the current conventional methods. Thus, the system can be looked at as two optimization models. The first deals with cost optimization at the project level and the second is an optimization model to maximize the utilization of available funds at the network level. The development and application of the models are based on data collected from the network of the East-Delta region, Egypt