2660 Department of Transportation
Major Program Changes
  • The Budget provides for a change in the taxes that are charged on fuel. The existing sales tax rate of 6 percent on gas and 4.75 percent on diesel which currently goes to fund public transportation at both the state and local level, highway construction, and local road maintenance, will be eliminated, and in its place fuel excise taxes will be increased by 10.8 cents per gallon, the revenues from which will go to replace the $629 million in funding lost to state highway construction, $629 million for local road maintenance, and $610 million to reimburse the General Fund for its debt service costs on transportation bonds. Miscellaneous revenues of $72 million will be retained in the State Highway Account and used to offset debt service. Additionally, $57 million from 2009-10 and $254 million from 2010-11 will be transferred to the General Fund from the funds remaining in the Public Transportation Account as reimbursement for debt service payments on transit-related bonds. Intercity Rail and some transportation planning costs will continue to be funded from the Public Transportation Account until the balance in that fund is exhausted in 2011-12, after which it will become necessary to fund these activities from the General Fund or other funding sources.

  • The Budget proposes to shift the costs of developing project inititation documents (PIDs) for local projects to local agencies. This will save the state $12.475 million that can be redirected to fund priority state projects.

  • The Budget proposes $3.45 billion to be spent over the next 30 years ($115 million per year) to fund and attract private partners and investors in comprehensive development lease agreements for transportation projects.

  • Legislation will be introduced to cap the state's liability on the amount of damages for noneconomic losses that can be awarded in personal injury suits as a result of accidents on the State's highways. California is one of very few states in the nation that does not limit the state's liability and degree of responsibility under current joint and severable liability statutes. Consistent with other states, these reforms will cap monetary awards for noneconomic damages and limit the state's liability to its share of responsibility.

  • The Budget proposes an increase in Grant Anticipation Revenue Vehicles (GARVEE) bonds of $680 million to accelerate three major SHOPP projects. This action will save the state $11 million in net project costs over multiple years.

  • The Budget proposes an increase of $57.3 million from the State Highway Account to retrofit 147 vehicles and replace 288 vehicles to comply with various federal and state air quality mandates.