This document summarizes California's transportation funding history and current challenges. It notes that California's transportation funding will collapse in 2013 due to declining gas tax revenues and diversions. The state has $295 billion in unmet transportation infrastructure needs through 2021. Without new funding, 58% of roads will require rehabilitation and 20% of bridges will need major work. The document calls for developing local and state funding solutions to address the crisis and invest in maintaining California's deteriorating transportation system.

1. Market Outlook State Transportation
Program
AGC – CLC Working Weekend
Will Kempton, CEO
January 25, 2012

2. History of Funding
• Proposition 111 (1990)
o Last gas tax increase
• Proposition 108 (1990)
o $1 billion bond for rail capital expenditures
• Proposition 116 (1990)
o $1.99 billion bond for passenger and commuter rail
• Proposition 42 (2002)
o Gasoline sales tax used for transportation purposes
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3. History of Funding contd.
• Traffic Congestion Relief Act (2000)
o $4.91 billion for specific projects
• Proposition 1B (2006)
o $19.93 billion bonds for transportation projects
• Proposition 1A (2008)
o $9.95 billion for High-Speed Rail
• ARRA (2009)
o $48.1 billion for transportation infrastructure
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4. SB 45 (1997)
• Changed how projects were programmed into
the State Transportation Improvement
Program(STIP)
• Required 75% of funds go to the Regional
Transportation Improvement Program (RTIP)
• Expanded regional control and accountability
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5. Transportation Revenue Sources
1990 - $8 billion
Local
50% 50%
State & Federal
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6. Transportation Revenue Sources
2011 – $305 billion
11%
15%
Local
State
Federal
74%
* 2011 SCAG Revenue Model 6

7. 7

8. Statewide Transportation System Needs
Assessment 2011
“California’s transportation system
is in jeopardy. Underfunding –
decade after decade – has led to the
decay of one of the State’s greatest
assets.”
- California Transportation Commission 2011
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9. Neglected Improvements are Staggering
California’s unfunded
needs are
$295 billion
through 2021.
- California Transportation Commission Statewide Transportation
Needs Assessment 2011
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10. Caltrans Maintenance Needs are Growing
- Legislative Analyst’s Office, 2011 10

11. Infrastructure Report Card
CALIFORNIA
• Pavement:
o 58% of California’s Roadways Require Rehabilitation or
Pavement Maintenance
• Bridges:
o 20% Require Major Maintenance or Preventative
Work
o 6% Require Complete Replacement
- Statewide Transportation Needs Assessment 2011
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12. Infrastructure Report Card
CALIFORNIA
• 6 of the Nation’s 10 Worst Urban Area Pavement
Conditions
• 14 of the Nation’s 20 Most Congested
Transportation Corridors
• 66% of California’s Major Urban Highways are
Congested
- Texas Transportation Institute
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13. Poor Road Conditions
• Cost Californian’s $13.9 Billion Annually
o $586 per Motorist
• Contribute to More than One-Half of US Highway
Fatalities:
o More than Drunk Driving, Speeding or Failing to use
Seat Belts
- TRIP
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14. Population will Grow from 38 MM to 44 MM
by 2020
VMT is growing 10 times
faster than lane miles.
- Governor’s 2006 Strategic Growth Plan
Truck freight is expected to
increase 75% by 2035.
- Statewide Transportation Needs Assessment
2011
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15. Funding Will Collapse in 2013
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16. Our Current Challenges
• Decline of gas tax revenues and
purchasing power
• Diversion of transportation revenues
• Lack of state and federal solutions
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17. Develop Local Solutions
• Local funding:
o Jump start projects
o Leverages state and
federal money
o Increases local control
and flexibility
o Connects public action
with direct benefits
• Measure M2 passed by
70% margin
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18. Develop State Solutions
• Public-Private Partnerships
• Vehicle License Fee
• Fuel User Fee
• Cap & Trade
• Infrastructure Bond
• VMT
• Voter Threshold
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