Legislative Analyst's Office, December 2002

Recommended Legislation
Transportation

Transportation

Require Fees to Cover the Costs of Issuing Encroachment Permits

Recommendation

Require that the fees charged to private companies by Caltrans for issuing encroachment permits cover, but do not exceed, the total cost of providing this service.

Rationale

Caltrans issues encroachment permits to government agencies and private companies for construction and nontransportation activities within the state highway system's right-of-way. State law allows the department to charge private companies for these permits, provided the total fees collected do not exceed the cost of reviewing permit applications from private companies. However, the encroachment permitting fees Caltrans collects cover only about two-thirds of the cost of reviewing private-company permit applications. This has resulted in the state annually providing about $2.5 million worth of this service to private companies free of charge.

Because the fees charged do not equal the cost of issuing the permits, the State Highway Account (SHA) must cover the difference. If the fees more closely matched the costs, this SHA money could instead be used for other transportation purposes.

LAO Reference

Please see our 2002-03 Analysis, page A-49.

LAO Contact

Joel Riphagen: 319-8360 


Transportation

Conduct Ongoing Transportation Needs Assessment

Recommendation

Require a statewide transportation needs assessment every
five years.

Rationale

The first step in identifying a solution to a problem is identifying the scope of the problem. Yet, when it comes to transportation, there is currently no requirement that Caltrans or any other state entity assess and report on the state's overall transportation needs on a regular basis.

While Caltrans and regional transportation planning agencies (RTPAs) must regularly update funding and scheduling documents, such as the State Transportation Improvement Program and the State Highway Operation and Protection Program, these documents provide no information about unfunded needs. Similarly, RTPAs are required to adopt 20-year long-range planning documents under both state and federal law, but these documents are not compiled to provide a view of the state's needs as a whole.

LAO Reference

Please see California Travels: Financing Our Transportation, May 2000, page 54.

LAO Contact

Dana Curry: 319-8320


Transportation

Authorize High Occupancy Toll Lane Pilot Project

Recommendation

Create high occupancy toll (HOT) lanes as a pilot program.

Rationale

Single occupant vehicles make less efficient use of state highway capacity than carpools or buses. Charging drivers for the cost of driving, through the use of tolls, can encourage people to use alternatives to driving alone. In this way, tolls can serve as a type of user fee which can result in a more efficient use of the existing capacity on the state highway system.

In order to determine whether a more widespread use of road pricing is advisable, the Legislature should establish a pilot program to authorize HOT lanes. The HOT lanes allow single-occupant vehicles to buy access into the carpool lane for a fee, and thereby make greater use of any excess capacity in the carpool lane.

LAO Reference

Please see HOV Lanes in California: Are They Achieving Their Goals?, January 7, 2000, page 20, and After the Transportation Blueprint: Developing an Efficient Transportation System,
March 5, 1998, page 12.

LAO Contact

Joel Riphagen: 319-8360


Transportation Revenues

Fund Transit Rolling Stock

Recommendation

Amend the State Constitution to permit the use of gas tax revenues for transit rolling stock.

Rationale

The State Constitution (Article XIX) restricts the use of fuel tax revenues (gas and diesel taxes) to (1) construction, maintenance, and operation of roads and highways or (2) construction and maintenance of mass transit guideways and facilities (mainly rail tracks). Transit rolling stock (mainly railcars and buses) is the only type of transportation capital outlay that currently cannot use fuel tax revenues under Article XIX.

Modifying Article XIX to allow fuel tax revenues to be used for transit rolling stock would allow greater flexibility in the use of fuel tax revenues for the most cost-effective transportation projects.

LAO Reference

Please see After the Transportation Blueprint: Developing and Funding an Efficient Transportation System, March 5, 1998, page 3.

LAO Contact

Dana Curry: 319-8320 


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