The Road Ahead for Transportation Funding in CA

CalAPA Spring Asphalt Pavement ConferenceApril 12, 2017

Presented by: Roger Dickinson Executive Director Transportation California

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California – Land of Opportunity?

• Population Will Grow from 39MM Today to 44MM by 2020

• 6th Largest Economy in the World Gross State Product over $2.0T

• Unparalleled Quality of Life

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California – Land of Opportunity?

• And yet, California Ranks 48th in the Nation in Terms of the Condition of our Highways

• California Drivers Lose 93.7MM Hours a Year Sitting in Traffic

• Most of Expected Population Growth Will Take Place in Urban Areas, Making Modernization of Aging Transit Systems and Construction of New Ones a Pressing Need

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This Situation Will Continue as Fuel Efficiency Contributes to Revenue Loss

19941996

19982000

20022004

20062008

20102012

20142016

20182020

20222024

20262028

2030

Vehicle Miles TraveledGas Consumption with Increased Efficiency

Revenue Loss Due to In-creased Fuel Efficiency

VMT Growth

Consumption Decrease

In this conceptual chart, Vehicle Miles Travelled and Fuel Consumption have been indexed to the same starting point in 1994 to enable comparison of the relative change of the two metrics over time.

California Infrastructure Report Card

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Pavementof California Roadways Require Rehabilitation or Pavement Maintenance58%

- California Transportation Commission . Statewide Transportation Needs Assessment 2011

of California’s Counties have an Average Pavement Rating of “At Risk” or “Poor”87%of Local Streets and Roads will be in “Failed” Condition by 2022 under our Current Funding Levels

25%of the Nation’s 10 Worst Urban Area Pavement Conditions6

California Infrastructure Report Card

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Bridges

Require Complete Replacement

Require Major Maintenance or Preventative Work20%6%

- California Transportation Commission . Statewide Transportation Needs Assessment 2011

of Locally-owned Bridges will Require Rehab or Replacement over the Next 10 Years55%

California Infrastructure Report Card

7- Texas Transportation Institute

of the Nation’s 20 Most Congested Transportation Corridors are in California14of California’s Major Urban Highways are Congested66%

Congestion

California Infrastructure Report Card

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of Vehicles in California’s Bus Fleet are at or beyond the 12-year Replacement Age Recommended by the Federal Transit Administration

46%

Projected Level of Investment Needed to Bring all Existing Transit Capital Assets to a “State of Good Repair” over the Next 10 Years.

$37.2B

Transit

There Are Rail Challenges, Too!

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10-year Capital Shortfall$3+ B 10-year Operation and Maintenance Need$1.4B

Conventional Rail

- CTA Needs Assessment

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California High-Speed Rail

- California High-Speed Rail Authority

• $68B Cost

• $9.95B from Prop 1A

• $3.3B Federal Matching Funds

• Additional $55B Needed

Neglected Improvements Are Staggering

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California’s unfunded needs are

through 2021.

$295B

- California Transportation Commission .

Statewide Transportation Needs Assessment 2011

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Transportation Funding

• California’s Revenue Sources for Roads, Bridges, Rail and Transit Fuel Taxes Sales Taxes on Fuels Truck Weight Fees Tolls Local Sales Tax Programs Local Impact Fees General Obligation Bonds Federal Funding

Richmond San Rafael Bridge.

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How the Money Flows

• Federal • State• Local

Bonds 15%

State Revenues 17%

Local Revenues 56%

Federal Revenues

12%

BondsState RevenuesLocal RevenuesFederal Revenues

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The Fiscal “Cliff”

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Historic STIP Programming Levels

2000 STIP 2002 STIP 2004 STIP 2006 STIP Mid-Cycle (STIP

Augmentation)

2008 STIP 2010 STIP 2012 STIP 2014 STIP 2016 STIP $-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

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Road Repair & Accountability Actof 2017

Statewide Investment Programs (50%)Fix-it-First Highways $15 billionBridge and Culvert Repair $4 billionTrade Corridor Investments $3 billionSolutions for Congested Commute Corridors $2.5 billionParks Funding for Ag, Off-Highway Vehicle & Boating $800 millionSTIP (State Share) $275 millionFreeway Service Patrol $250 millionCalifornia Public Universities Transportation Research $70 million

Local or Regional Investments Programs (50%) Fix-it-First Local Roads $15 billion

Transit Capital & Operations $7.5 billion

Local Partnership Funds $2 billion

Active Transportation Program Bicycle & Pedestrian Investments $1 billion

STIP (Local Share) $825 million

Local Planning Grants $250 million

TOTAL $52.4 billion- CalSTA

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Road Repair & Accountability Act

10-Year Revenue by TypeFuel Taxes

Gas Excise $24.4 billion

Diesel Excise $7.3 billion

Diesel Sales $3.5 billion

Vehicle-Based Fees

Value-Based Transportation Improvement Fee $16.3 billion

ZEV Fee Commencing in 2020 $2 billionOne-Time Repayment of Transportation LoansRepaying Outstanding Loans from General Fund $706 million

TOTAL $52.4 billion

- CalSTA

of 2017

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We Did It!SB 1 Passes Senate by a 27-11 Vote Passes Assembly by 54-26 Vote