The Governor’s budget provides a total of $16.7 billion from various fund sources—the General Fund, special funds, bond funds, federal funds, and reimbursements for various transportation departments and programs under the Transportation Agency in 2014-15. This is a decline of $560 million, or 3.2 percent, below estimated expenditures for the current year. In this report, we review the Governor’s 2014-15 budget proposals for various transportation departments and programs, including the California Department of Transportation, the California High-Speed Rail Authority, the California Highway Patrol, and the Department of Motor Vehicles. We identify concerns with several of the proposals and make recommendations for legislative consideration. For example, we find that the Governor's high-speed rail proposals raise several issues. Specifically, we find (1) using cap-and-trade auction revenues for high-speed rail may not maximize greenhouse gas reductions, (2) there currently is not a funding plan to complete the project’s Initial Operating Segment, (3) it is unclear how much cap-and-trade revenue will actually be available for high-speed rail in the future, and (4) that bond funds approved in Proposition 1A for high-speed rail currently face legal risks.