California Transportation Commission (CTC)
The CTC is responsible for the programming and allocating of funds for the construction of highway, passenger rail, and transit improvements throughout California. The CTC also advises and assists the Secretary of Business, Transportation and Housing Agency and the Legislature in formulating and evaluating state policies and plans for California’s transportation programs. The CTC is also an active participant in the initiation and development of State and Federal legislation that seeks to secure financial stability for the State’s transportation needs.
Federal Highway Administration (FHWA)
FHWA formula (non-discretionary) funding includes Congestion Mitigation and Air Quality (CMAQ) Program and Regional Surface Transportation Program (RSTP) funds. CMAQ Apportionments and RSTP Apportionments within California are available from Caltrans. The Transportation Alternatives Program (TAP) is a new program authorized under MAP-21. FHWA also administers a number of discretionary grant programs.
Federal Highway Trust Fund
The Federal Highway Trust Fund (HTF) provides federal highway and transit funding from a nationally imposed fuel tax of 18.3 cents per gallon on gasoline and 24.4 cents per gallon on diesel fuel. FHWA reports on the month to month balance of the HTF. The Congressional Budget Office (CBO) regularly provides longer-term status reports on the HTF.
Federal Transit Administration (FTA)
FTA funding falls into two categories: formula and non-formula (discretionary). FTA Formula Programs include 5307 Urbanized Area Formula, 5310 Enhanced Mobility for Seniors and Individuals with Disabilities Formula, 5311 Formula Grants for Rural Areas, 5337 State of Good Repair Grants Formula, and 5339 Bus and Bus Facilities Program Formula. FTA Non-Formula Programs include 5309 Fixed Guideway Capital Investment Grants.
Gas Excise Tax Subventions (to Cities and Counties)
Revenues from the gas tax deposited into the Highway Users Tax Account in the Transportation Tax Fund are apportioned by the California State Controller to cities and counties. These apportionments are provided for in Streets and Highways Code Sections 2104 to 2122.
Innovative Financing
Innovative finance is a broadly defined term that encompasses a combination of techniques and specially designed mechanisms to supplement traditional financing sources and methods. Innovative finance for transportation includes such measures as:
- New or non-traditional sources of revenue
- New financing mechanisms designed to leverage resources
- New fund management techniques
- New institutional arrangements
The FHWA Office of Innovative Program Delivery provides tools, expertise and financing to help the transportation community explore and implement innovative strategies to deliver costly and complex infrastructure projects. The FHWA Resource Center Innovative Finance Technical Service Team provides a complete range of services to financial officials at state, local, and Federal Highway Administration Division offices. The Caltrans Office of Innovative Finance – Division of Budgets maximizes available resources by exploring and utilizing traditional and innovative financing strategies.
Local Option Sales Tax Measures
Revenues are derived from locally imposed ½ percent sales taxes for select counties. Imperial, Los Angeles, Orange, Riverside, and San Bernardino Counties currently have sales tax measures dedicated to transportation expenditures.
Most local sales tax measures are for a limited term, but all continue through the 2012-2035 RTP/SCS planning period. Imperial County Measure D continues through 2050, Orange County Measure M continues through 2041, Riverside County Measure A continues through 2039, and San Bernardino County Measure I continues through 2040. Los Angeles County levies a permanent 1 percent tax (a combination of two ½ percent sales taxes—Proposition A and Proposition C). In addition, Los Angeles County Measure R provides a temporary, additional ½ percent sales tax (on top of the existing, permanent 1 percent sales tax) and continues through 2039. Ventura County is the only county in the SCAG region without a local sales tax measure.
The California State Board of Equalization reports Payments to Special Districts and the Transactions (Sales) and Use Taxes, which include local option sales tax measure revenues.
Moving Ahead for Progress in the 21st Century Act (MAP-21)
MAP-21 is the successor transportation authorization replacing SAFETEA-LU and funds surface transportation programs for fiscal years (FY) 2013 and 2014. MAP-21 specific sites include:
- U.S. Department of Transportation: http://www.dot.gov/map21
- Federal Highway Administration: http://www.fhwa.dot.gov/map21/
Proposition 1B
As approved by the voters in the November 2006 general elections, Proposition 1B enacts the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 to authorize $19.925 billion of state general obligation bonds for specified purposes, including high-priority transportation corridor improvements, State Route 99 corridor enhancements, trade infrastructure and port security projects, school bus retrofit and replacement purposes, state transportation improvement program augmentation, transit and passenger rail improvements, state-local partnership transportation projects, transit security projects, local bridge seismic retrofit projects, highway-railroad grade separation and crossing improvement projects, state highway safety and rehabilitation projects, and local street and road improvement, congestion relief, and traffic safety.
State Fuel Tax Swap
The Fuel Tax Swap provides for a combination of lowering the sales and use tax rate applicable to sales of motor vehicle fuel, excluding aviation gasoline, and simultaneously raising the state excise motor vehicle fuel tax, effective July 1, 2010. Additionally, the Fuel Tax Swap raises the sales tax rate applicable to sales of diesel fuel and simultaneously lowers the state excise tax on diesel fuel, effective July 1, 2011. The California State Board of Equalization (BOE) is required to adjust the excise tax rates for both motor vehicle fuel and diesel fuel annually so that the total amount of tax revenue generated is equal to what would have been generated had the sales and use tax and excise tax rates remained unchanged.
State Highway Operation and Protection Plan (SHOPP)
The SHOPP is a four-year program that provides funding from the State Highway Account (SHA) to be used for projects that reduce collisions and hazards to motorists, preserve and rehabilitate bridges and roadways, enhance and protect roadsides, and improve the operation of the State Highway System. It does not include projects that increase the capacity of the transportation system. SHOPP revenues are taken “off the top” before allocations are made for the STIP.
State Transit Assistance Fund (STA)
The STA is derived from the statewide sales tax on diesel fuel. STA funds are appropriated by the Legislature to the California State Controller’s Office. That Office then allocates the tax revenue, by formula, to planning agencies and other selected agencies. Statute requires that 50 percent of STA funds be allocated according to population and 50 percent be allocated according to operator revenues from the prior fiscal year.
State Transportation Improvement Program (STIP)
The STIP is a five-year capital improvement program that provides funding from the State Highway Account (SHA) for projects that increase the capacity of the transportation system. The SHA is funded through a combination of state gas excise tax, the Federal Highway Trust Fund, and truck weight fees. The STIP may include projects on state highways, local roads, intercity rail, or public transit systems. The Regional Transportation Planning Agencies (RTPAs) propose 75 percent of STIP funding for regional transportation projects in Regional Transportation Improvement Programs (RTIPs). Caltrans proposes 25 percent of STIP funding for interregional transportation projects in the Interregional Transportation Improvement Program (ITIP).
Transit Farebox Revenue
Transit farebox revenue data is available from the California State Controller’s Office Transit Operators and Non-Transit Claimant Annual Report and National Transit Database Annual Transit Profiles.
Transportation Development Act (Local Transportation Fund)
The Transportation Development Act (TDA) provides two major sources of funding for public transportation—the Local Transportation Fund (LTF) and the State Transit Assistance Fund (STA). LTF revenues are derived from a quarter-cent sales tax on retail sales statewide. Funds are returned to the county of tax generation. This category includes Article 3, 4, 4.5, and 8 of the Government Code. In the SCAG region, TDA funds are used mostly for transit operations and transit capital expenses. Article 3 funds support bicycle and pedestrian facilities.
The California State Board of Equalization reports Payment to County Transportation Funds from the 1/4 Percent Local Sales and Use Tax, which include LTF revenues