I think this thread provides an opportunity for me to provide some background on how Caltrans is funded. I see several people have issues with how my employer operates. But if you were to understand the funding constraints, you might be a little more understanding as to why we don't do all the things you think we should do.
Back in 1998 there was this little piece of legislation known as Senate Bill (SB) 45 that dramatically changed the funding structure for transportation in California. This bill, put simply, put 75 percent of the State Transportation Improvement Program (STIP) funds into the hands of the counties. The State retains 25 percent for funding of inter regional projects. There are some other splits and limitations that I won't get into here. But in essence, the counties dictate to Caltrans what projects will be built.
The primary source for transportation funding here is, like most other places, the excise tax on fuel. However, close to half of the State's counties have local sales taxes that are used for transportation. Combine that resource with their share of the STIP and that gives them a lot of leverage.
The STIP is used to fund road widening and major improvements. Another fund, also paid for out of the fuel excise tax, is the State Highway Operations and Protection Program (SHOPP). These funds are used to cover maintenance needs and operational improvements. SHOPP funds cannot be used to widen roads. Caltrans controls the SHOPP, and those funds can be mixed with STIP funds to address multiple needs in one project.
Here in California, the fuel excise tax has not been raised in more than 20 years. During that time, as vehicles have become more fuel efficient, people are filling up less, so there's less money coming into the coffers. And inflation has reduced the buying power of those dollars over time.
With limited funding, and restrictions on the funds it has available, Caltrans cannot do all that it would. It's been estimated that there's about $58 billion in unmet transportation needs in this State. In the past, there have been general obligation bonds that have helped fund improvements, but those bonds have been issued and so that resource is gone. The ARRA (Obama stimulus) funds are gone too. Given this bleak picture, the California Transportation Commission made severe cuts to the STIP a few months back. This affected both Caltrans' and the counties' shares. In fact, there's been talk from time to time of not funding the STIP at all and putting everything into SHOPP.
The system is broke and while a fuel excise tax increase might bring some additional funds in the short term, it still won't work in the long term given the federal mandates for improved vehicle fuel efficiency. The counties can cover some things with their sales taxes and at least two counties that I know of plan to put ballot measures up in November for additional sales taxes on top of what they already have. But it will never be enough. The issues with the excise tax are why there's the push for a road use charge as a replacement. I'm participating in the pilot and I am very interested in seeing what it leads to.
Bottom line - we don't have much to spend, and so we have to prioritize accordingly.
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