Program Enhancements and Other Budget Adjustments
Transportation Programs


STATE TRANSPORTATION IMPROVEMENT PROGRAM (STIP)

STIP
 The STIP is the state's transportation enhancement program. It includes the addition of highway lane miles as well as expansion of intercity rail projects. Statutorily, the state determines projects for 25 percent of STIP funds, while regional transportation planning agencies program the remaining 75 percent. STIP is funded primarily from Proposition 42 resources in the Transportation Investment Fund, though some resources are provided from Proposition 1B bonds, federal funds, the Public Transportation Account, and Proposition 42-related loan repayments.

The STIP Fund Estimate is an approximation of all resources reasonably expected to be available for the STIP and other transportation priorities over a five-year period. The 2006 STIP Fund Estimate and STIP Augmentation cover 2006-07 through 2010-11, totaling $8.3 billion. The Budget reflects expenditures of $2.1 billion in 2007-08 and $1.5 billion in 2008-09 for STIP projects, a decrease of 29 percent. The reduction is due primarily to an unusually high one-time increase in capital funding for public transportation projects in 2007-08 and statutory changes in SB 79 and SB 717 that specify that a significantly larger share of the Public Transportation Account revenues now go to local transit agencies to fund operating costs. The reduction also reflects the temporary increase in capital expenditures in 2006-07 and 2007-08 associated with the $1.4 billion Proposition 42 loan repayment in 2006-07.


STATE HIGHWAY OPERATION AND PROTECTION PROGRAM (SHOPP)
 The 2006 STIP Fund Estimate reflects $7.9 billion in resources for SHOPP projects from 2006-07 through 2009-10. The Governor's Budget reflects expenditures of $2 billion in 2007-08 and $1.6 billion in 2008-09, a decrease of 20 percent due to a one-time increase of $460 million in 2007-08 in reimbursements for past emergency expenditures and the redistribution of federal funds that other states were unable to use.


SHOPP
 The SHOPP includes a range of rehabilitation projects that are intended to reduce hazardous road conditions, preserve bridges and roadways, enhance and protect roadsides, and improve operation of the state highway system. The SHOPP is funded primarily from the State Highway Account from the state's two-thirds share of fuel excise tax revenues, weight fees, and federal funds.


LOCAL ASSISTANCE PROGRAMS
 Caltrans provides state and federal transportation funds to local agencies for local capital improvement projects on the state highway system, mass transit capital improvement projects, and local bridge improvement projects. The Governor's Budget proposes $3 billion for local transportation in 2008-09, including $156 million for local mass transportation projects.


LOCAL MASS TRANSPORTATION
 The Governor's Budget includes funding for the following transit, rail, and planning programs, as reflected in Figure BTH-02. This reflects a continuation of the funding allocation priorities set in Chapter 181 (SB 88), Statutes of 2007.

  • $141 million to continue funding transportation services administered by Regional Centers.
  • $1.1 billion for local transit agencies for operating and capital purposes through the State Transit Assistance Program. This amount includes $350 million in Proposition 1B funds for capital transit projects and $742.9 million from sales tax revenues, including a $74 million increase in Proposition 42 revenues resulting from passage of SB 717. Operating funds from sales tax revenues are growing from $304 million in 2007-08 to $743 million in 2008-09.

STATE OPERATIONS
  • The Governor's Budget proposes $4.2 billion in state operations funding to support Caltrans in 2008-09, including $2.9 billion from the State Highway Account, $362 million in federal funds, and $990 million from other special funds, a $14 million increase from currently estimated 2007-08 expenditures.
  • A new $20 million bond program is being proposed for Caltrans for the sale of Clean Renewable Energy Bonds (CREBs). The resources will be utilized to fund up to 70 photovoltaic (i.e., solar energy) projects at maintenance facilities, equipment shops, transportation management centers, materials labs, and office buildings.

MAINTENANCE
 The Budget includes $1.2 billion and 5,922 positions to maintain approximately 15,000 centerline miles of highway, over 230,000 right-of-way acres, and over 12,000 state highway bridges and to inspect over 12,000 local bridges. This is an increase of $21 million over 2007-08.


STATE RAIL OPERATIONS
 The Budget includes $106 million and 178 positions to manage and coordinate intercity rail passenger services that provide commuters with a range of transportation options, help improve the state's air quality, and reduce highway congestion and fuel consumption. Caltrans manages two state-supported routes operated by Amtrak, the San Joaquin and Pacific Surfliner, and financially supports the Capitol Corridor.


CAPITAL OUTLAY SUPPORT
 Funding for Caltrans capital outlay projects is zero-based each year and submitted as part of the May Revision once better workload estimates become available and actual project allocations are known. Because the capital outlay support workload is much less for public transportation projects, and because a larger proportion of STIP projects will be public transportation projects, it is anticipated that growth in capital outlay support workload will not be as strong as previously anticipated because more projects are likely to be delivered by local agencies than previously predicted.


HIGH-SPEED RAIL AUTHORITY
 The High-Speed Rail Authority is charged with planning the development and implementation of an intercity high-speed rail service. The Budget proposes to continue the current level of funding of $1.2 million for basic staff support.
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CHAPTER HIGHLIGHTS for Business, Transportation, and Housing Back to Top

 Proposed Workload Budget
 Proposed Budget-Balancing Reductions
 Other Special Session Issues
 Program Enhancements and Other Budget Adjustments
 image of black pointing arrowTransportation Programs
  Transportation Revenue
  Motor Vehicle Account
  California Highway Patrol
  Department of Motor Vehicles
  Business and Housing
  Department of Housing and Community Development
PRINTABLE BUDGET DOCUMENTS Back to Top
Budget Summary - Business, Transportation, and Housing (pdf * - 294K) -
Provides this entire Business, Transportation, and Housing Chapter in pdf format.
ADDITIONAL INFORMATION Back to Top
Proposed Budget Detail - Business, Transportation, and Housing
Displays Proposed Budget Detail information for Business, Transportation, and Housing.