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April 3, 2008 - Presented to: Assembly Budget Subcommittee No. 5 on Transportation
February 20, 2008 - In order to address a projected shortfall in the Motor Vehicle Account (MVA), the Governor proposes to increase vehicle registration fee by $11 per vehicle--bringing total registration fee to $52 per vehicle, and to double the penalty for late registration. Absent such corrective actions, the level of MVA spending proposed by the budget would leave the account with a shortfall of over $160 million at the end of 2008-09, growing to $500 million in 2009-10, and nearly $1 billion at the end of 2010-11. If revenues and expenditures grow at historical trends, the fee hike proposal would keep MVA solvent through 2013-14.
February 20, 2008 - Proposition 1B authorizes about $20 billion in bond funds for transportation projects. The timely delivery of these projects depends on several factors, such as the availability of funds anticipated from other sources and the ability of the Department of Transportation to hire the necessary staff to plan and construct projects. We recommend several measures to ensure that bond-funded projects are not delayed. review infrastructure
February 20, 2008 - Actions taken as part of the 2007-08 budget package significantly changed the way the state uses some of its transit funds. In particular, a portion of gasoline sales tax revenues will be diverted from transit programs to pay for certain transportation-related activities previously supported by the General Fund. We discuss the ongoing impact of such actions on funding for state transportation programs, as well as the ongoing funding constraint the state faces relative to the maintenance and rehabilitation of its transportation system.
December 3, 2007 - Presented to the Senate Budget Subcommittee No. 4 on Transportation Hon. Mike Machado, Chair
August 22, 2007 - Presented to the Senate Transportation and Housing Committee
March 29, 2007 - Presented to Senate Budget Subcommittee No. 4 on Transportation
March 28, 2007 - Presented to Assembly Budget Subcommittee No. 5 on Transportation.
February 26, 2007 - Presented to Assembly Transportation Committee and Assembly Budget Subcommittee No. 5
February 21, 2007 - It is virtually impossible for California—or any other state—to implement the Real ID Act by the federal deadline of May 2008. Federal regulations for implementing the act are expected to be delayed until July or August of 2007 and there is no federal plan to fund the costly mandate. Nonetheless, the administration has indicated that it may request funding to implement Real ID as part of the spring revision process. Given the current lack of information regarding federal requirements and funding, as well as growing opposition to the act in other states, we recommend the state go slowly for now, and limit spending to planning activities.
February 21, 2007 - Seven years into the Traffic Congestion Relief Program (TCRP), only 26 of the 141 projects have been completed. In addition, many project sponsors have yet to identify full funding for their TCRP projects. While development work continues on many projects, delayed state funds and cost increases continue to threaten project delivery. Nevertheless, we recommend actions that the Legislature can take to ensure that funds are used to deliver projects in a timely manner and to ensure that the California Transportation Commission has adequate flexibility in implementing the program.
February 21, 2007 - Proposition 1B authorizes about $20 billion in bond funds for transportation. The measure allocates specific amounts of bond funding for particular transportation uses, and requires that the funding be subject to legislative appropriation. The budget requests three-year appropriations of these funds and proposes budget bill language that would allow the administration to transfer appropriated funds among Proposition 1B programs. These proposals run counter to the bond measure’s intent that the Legislature appropriate specific amounts for particular transportation programs. Accordingly, we recommend that the Governor’s proposals be rejected.
February 21, 2007 - The passage of Proposition 42 rendered the "spillover" mechanism unnecessary. In order to simplify the state’s transportation funding structure, we recommend the enactment of legislation to eliminate the spillover mechanism for generating revenue into the Public Transportation Account (PTA) beginning in 2008-09. This would also reduce the volatility of revenues into the PTA. While eliminating the spillover would result in less funding for transit operations through the State Transit Assistance program in some years, it would increase the predictability and stability of annual funding. Moreover, additional funds could become available for broader transportation uses.