AGC – CLC Working WeekendWill Kempton, CEO

January 25, 2012

Market Outlook State Transportation Program

History of Funding

• Proposition 111 (1990)o Last gas tax increase

• Proposition 108 (1990)o $1 billion bond for rail capital expenditures

• Proposition 116 (1990)o $1.99 billion bond for passenger and commuter rail

• Proposition 42 (2002)o Gasoline sales tax used for transportation purposes

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History of Funding contd.• Traffic Congestion Relief Act (2000)

o $4.91 billion for specific projects• Proposition 1B (2006)

o $19.93 billion bonds for transportation projects• Proposition 1A (2008)

o $9.95 billion for High-Speed Rail• ARRA (2009)

o $48.1 billion for transportation infrastructure

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SB 45 (1997)

• Changed how projects were programmed into the State Transportation Improvement Program(STIP)

• Required 75% of funds go to the Regional Transportation Improvement Program (RTIP)

• Expanded regional control and accountability

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Transportation Revenue Sources

50%50%

1990 - $8 billion

LocalState & Federal

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Transportation Revenue Sources

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74%

15%

11%

2011 – $305 billion

LocalState Federal

* 2011 SCAG Revenue Model

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Statewide Transportation System Needs Assessment 2011

“California’s transportation system is in jeopardy. Underfunding – decade after decade – has led to the decay of one of the State’s greatest assets.”

- California Transportation Commission 2011

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Neglected Improvements are Staggering

California’s unfundedneeds are

$295 billionthrough 2021.

- California Transportation Commission Statewide Transportation Needs Assessment 2011

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Caltrans Maintenance Needs are Growing

10- Legislative Analyst’s Office, 2011

Infrastructure Report Card

CALIFORNIA• Pavement:

o 58% of California’s Roadways Require Rehabilitation or Pavement Maintenance

• Bridges:o 20% Require Major Maintenance or Preventative

Worko 6% Require Complete Replacement

- Statewide Transportation Needs Assessment 201111

Infrastructure Report Card

CALIFORNIA• 6 of the Nation’s 10 Worst Urban Area Pavement

Conditions• 14 of the Nation’s 20 Most Congested

Transportation Corridors• 66% of California’s Major Urban Highways are

Congested

- Texas Transportation Institute

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Poor Road Conditions

• Cost Californian’s $13.9 Billion Annuallyo $586 per Motorist

• Contribute to More than One-Half of US Highway Fatalities:o More than Drunk Driving, Speeding or Failing to use

Seat Belts- TRIP

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Population will Grow from 38 MM to 44 MM by 2020

VMT is growing 10 times faster than lane miles.- Governor’s 2006 Strategic Growth Plan

Truck freight is expected to increase 75% by 2035.- Statewide Transportation Needs Assessment 2011

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Funding Will Collapse in 2013

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Our Current Challenges

• Decline of gas tax revenues and purchasing power

• Diversion of transportation revenues • Lack of state and federal solutions

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Develop Local Solutions

• Local funding:o Jump start projectso Leverages state and

federal moneyo Increases local control

and flexibilityo Connects public action

with direct benefits• Measure M2 passed by

70% margin

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Develop State Solutions

• Public-Private Partnerships• Vehicle License Fee• Fuel User Fee• Cap & Trade• Infrastructure Bond• VMT• Voter Threshold

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