Statewide Transportation Funding At Risk

Your Name or AgencyDate

RTPARCTF

March 2010 Transportation Tax Swap Revenues in Jeopardy

• Proposition 26 has potentially severe negative implications for existing transportation funding in California and the Swap complicated Proposition 22 implementation.

• Prop. 22 restricts the State from using gasoline excise taxes (Highway User Tax Account or HUTA) for general fund relief and bond debt service, part of the March 2010 Transportation Tax Swap.

• Prop. 26 invalidates the 17.3-cent replacement excise tax enacted when the State eliminated the sales tax on gasoline (Prop. 42) under the Transportation Tax Swap.

• Unless the Legislature and Governor take immediate and comprehensive action, $2.5-$3.5 billion in annual transportation funding and 45,000-63,000 jobs will be lost.

• The 2010 California Statewide Local Streets and Roads Needs Assessment Update demonstrates that not only must the State act to save the existing bare bones transportation funding streams, there is a significant unfunded backlog on the local street and road system.

2010 California Statewide Local Streets and Roads Needs Assessment Update

• What is the condition of California’s system of local streets and roads?

• What will it cost to bring them up to a Best Management Practices (BMP) condition, which is most cost effective to maintain?

• What will it cost to maintain them in the BMP condition? • Considering existing revenues, is there a funding

shortfall? If so, what is it?• What are the potential solutions policy makers can

consider?• What are the impacts to the local transportation network

of different funding scenarios?

Local Streets & Roads are Huge Part of State Network

82% of California’s pavements are owned by cities and counties!

It’s Not Just Pavements …• Sidewalks

• ADA ramps

• Curb & gutter

• Storm drains

• Lighting

Data Collection

• 474 responses• Covers 97% miles!• 56 no responses

– 50 have popn < 50,000– 47 have < 100 miles

No responses 191

344 responses(64%)Data rec'd (2010)

91%

Data rec'd(2008 But Not

2010)6%

No data3%

Pavement Condition Index

0

100

70

50

25 Faile

d

Poor

At Risk

Good - Excellent

Statewide Average PCI = 66

Why is 66 Critical?

66

$2- 4/sy

$15-40/sy

$40-70/sy

$60- 100/sy

Condition of City of (BLANK) Local Roads

• City of ______ has an average PCI of _____.

• This is up/down from _____ in 2008.

• Other City specific details on condition of your local system.

Pavement Revenues*Revenues

($M) 2008/09 2009/10 Future% of

total

Federal** $ 167 $ 390 $ 68 6%

State $ 1,032 $ 819 $ 698 61%

Local $ 458 $ 453 $ 674 33%

Total $ 1,658 $ 1,663 $ 1,140 100%

* Based on 300 responses** ARRA accounted for $343 million ($50 m in 2008/09, $293 m in 2009/10)

Critical Revenues• Gas Tax (Highway Users Tax Account or

HUTA): Cities and Counties will receive approximately $1.629 billion FY 2010-11.– $1 billion in “old” HUTA– $629 million in “new” HUTA (Prop 42

replacement revenues under the Transportation Tax Swap)

– City of _____ receives _____ of this amount.

What Happens If We Don’t Get More Funding?

66

54

2010 2020

PC

I

Bac

klo

g (

$ b

illio

n)

$39B

$63.6B

Existing Funding ($1.42B/year)

$39$42

$45$51 $53 $55

$58$61 $64

$50

64 63 60 59 58 57 55 5466

62

$20

$30

$40

$50

$60

$70

$80

$9020

11

2012

2013

2014

2015

2016

2017

2018

2019

2020

Year

Bac

klog

($ b

illio

n)

0

10

20

30

40

50

60

70

80

90

100

PC

I

Funding Shortfall

  2011-2020 ($ billions)

Component Needs Funding Shortfall

Pavements $ 70.5 $ 14.2 $ 56.3

Essential Components $ 29.1 $ 6.8 $ 22.3

Bridges $ 3.3 $ 3 $ 0.3

Totals $ 102.9 $ 24 $ 78.9

2008 Results $ 99.7 $ 28.3 $ 71.453 cents/gallon!

Funding Shortfall for City of BLANK

• City of _____ has a funding shortfall of _____.

• City of _____ has a backlog of _____.

• This is up/down by ______ since 2008.

• Other city specific details on the financial needs of the system.

Summary– Data received represents 97% of local system– PCI = 66 is an “at risk” category & drops to 54 by

2020 with existing funding– The funding shortfall considering all existing revenues

is $78.9 billion over the next 10 years– Need to more than double existing funding to maintain

transportation assets– The Legislature & Governor must take immediate and

comprehensive action to save billions in transportation funding

Questions?