Tab 16 (4.7)

1Division of Budgets

Department of TransportationDepartment of TransportationHighlights of the Highlights of the

2008-09 Governor’s Budget2008-09 Governor’s Budget

Presented to thePresented to theCalifornia Transportation California Transportation

CommissionCommissionFebruary 13-14, 2008February 13-14, 2008

2

2008-09 Governor’s BudgetState of Fiscal Emergency

Budget Reductions and Reform There is a projected $14B budget gap for

2008-09. The Governor has declared a state fiscal

emergency Mandates reductions in General Fund funded

agencies Department excluded from proposed current year

cuts

3

2008-09 Governor’s Budget Overview

2008-09 Capital Outlay includes $2.65B in Proposition 1B funds

2008-09 Local Assistance includes $1.15B in Proposition 1B funds

CY BY Adjusted Proposed %

Category 2007-08 2008-09 ChangeState Operations $4,159 $4,244 2.0%Capital Outlay $6,817 $6,610 -3.0%Local Assistance $3,173 $3,033 -4.4%

Total $14,149 $13,887 -1.9%Department Positions 23,258 23,417 0.7%

Changes in Budget Category(millions)

4

2008-09 Governor’s Budget OverviewMajor Revenue Changes

($ millions)

2007-08 2008-09 2007-08 2008-09 2007-08PTA Sales tax - Diesel 357 381 344 366 -12 -16

Sales tax - Proposition 111 69 70 67 69 -2 -1

Sales tax - Spillover (gross)1 827 935 746 909 -81 -25

Spillover Diversions -622 -467 -622 -455 0 13PTA Total: $630 $918 $536 $889 -$94 -$30

SHA Fuel Excise Tax 2,212 2,252 2,173 2,212 -39 -40Weight fees 1,027 1,059 1,018 1,049 -9 -10

SHA Total: $3,239 $3,311 $3,191 $3,261 -$48 -$50

TIF Sales tax - Gasoline $1,481 $1,538 $1,439 $1,485 -$42 -$53

1. Includes revenue deposited in the Mass Transportation Fund and apportioned through theState Transit Assistance (STA) Program.

2008 Fund Estimate

2008-09 Governor's Budget

2008-09

Difference

5

2008-09 Governor’s BudgetSignificant Proposals

Proposition 42 Full funding in 2008-09 of $1.485B Proposition 1A loan repayment of $83M

Proposition 1B Bonds $3.80B for the Department of Transportation

in 2008-09 $1.53B for the Corridor Mobility Improvement

Account $1.12B for the Transportation Facilities Account $500M for the Trade Corridors Improvement Fund $200M for the State-Local Partnership Program

6

2008-09 Governor’s BudgetSignificant Proposals

Public Transportation Account (PTA). Sales tax forecasts for 2008-09 were revised

slightly downward between May and December Capital outlay and local assistance are over

$500M less than 2007-08 PTA receives loan of $60M loan from TCRF PTA reallocations include:

$141M to Regional Center Transportation $5M increase to University of California

Note: PTA resources reduced by statutory changes to distribution of spillover and to PTA share of Proposition 42 revenues

7

2008-09 Governor’s BudgetSignificant Proposals

Traffic Congestion Relief Program (TCRP) $83M Proposition 1A loan repayment $100M from Tribal Gaming to SHA Possible repayment schedule could result in

project delays and higher project costs May jeopardize federal and local project funding

8

2008-09 Governor’s BudgetSignificant Proposals

Local Funding $1.7B in additional funding for transit and

local streets and roads Proposed trailer bill to delay monthly HUTA

transfers for six monthsPerformance Based Infrastructure (PBI)

Allows public/private partnerships for infrastructure needs, including transportation

The Budget Stabilization Act Reforms the state budget process

9

2008-09 Governor’s BudgetOther Issues

The Strategic Growth Plan (SGP) Under-funded State Highway Operations and

Protection Program (SHOPP) The Administration will work with interested

parties and the Legislature to: Define scope of problem Develop solutions

10

2008-09 Governor’s BudgetOther Issues

Sacramento Superior Court ruled that $409M in PTA funds could not be diverted to help balance the state budget last year. The $409M is not appropriated in the

Department’s budget. The Legislature may or may not appropriate

this amount for transit capital purposes.