|Budget Issue:||Limit Caltrans tort liability.|
|Program:||Department of Transportation|
|Finding or Recommendation:||Recommend the Legislature evaluate the proposal on a policy basis rather than as part of the budget process.|
The budget proposes trailer bill language to limit the financial exposure of Caltrans for tort liability (BCP #18). Caltrans estimates that the requested change would save the department roughly $28 million per year when fully implemented. Our analysis indicates that the proposal has merit due to the budget savings it would generate for the department. However, we recommend the Legislature evaluate the proposal on a policy basis, including determining if limiting the liability of Caltrans while maintaining the status quo for other private or public sector entities is warranted, or whether similar changes should be made that would benefit these other entities.