A macroscopic pavement management system has been designed to yield optimum pavement conditions under constrained budgets. The system can predict future pavement conditions from performance curves generated using the serviceability concept developed by the American Association of State Highways and Transportation Officials (AASHTO). The pavement performance curves are generated using an incremental analysis of the AASHTO basic design equation. The system then applies an effective optimum decision policy that aims toward maximizing the annual average network present serviceability index according to the expected outcomes of predefined major rehabilitation actions and subjects to budget constraints. In contrast to the microscopic approach that considers “short” pavement sections, the macroscopic approach to pavement management uses “long” pavement sections, i.e., projects. Each project is constructed of the same pavement structural section and possesses a unique performance curve. Pavement projects with similar performance trends are grouped into six classes with each class treated as a single entity. The system is particularly beneficial in establishing long-term pavement rehabilitation policies in terms of planning, scheduling, and budgeting.