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Governor Brown's Transportation Funding Plan

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Governor Brown's Transportation Funding Plan Governor Brown’s Transportation Funding Plan This proposal is a balance of new revenue and reasonable reforms to ensure efficiency, accountability and performance from each dollar invested to improve California’s transportation system. Governor Brown’s Transportation Funding Plan Frequently Asked Questions This proposal is a combination of new revenue and reform with measurable targets for improvements including regular reporting, streamlined projects with exemptions for infrastructure repairs and flexibility on hiring for new workload. How much does this program provide overall for transportation improvements? • Over the next decade, the Governor’s Transportation Funding Plan provides an estimated $36 billion in funding for transportation, with an emphasis on repairing and maintaining existing transportation infrastructure and a commitment to repay an additional $879 million in outstanding loans. How much does it require the average vehicle owner in California to pay? • The proposal equates to roughly 25-cents per motorist per day according to the Department of Finance. The latest TRIP* study released, and subsequent article in the Washington Post, showed that Californians spend on average $762 annually on vehicle repair costs due to wear and tear / road conditions, etc. http://www.washingtonpost.com/news/wonkblog/ wp/2015/06/25/why-driving-on-americas-roads-can-be-more-expensive-than-you-think/ A figure that should go down significantly with improved road conditions. How will the program improve transportation in California over the next decade? • Within 10 years, with this plan, the state has made a commitment to get our roadways up to 90% good condition. Today, 41% of our pavement is either distressed or needs preventative maintenance. A commitment has also been made to repair an additional 200 bridges that are in distressed condition. How does the plan ensure my tax dollars will be used for transportation improvements? • The plan includes a Constitutional Amendment to Article XIX that ensures that tax dollars will be used for transportation improvements. How does the plan hold Caltrans and local governments accountable to deliver what they promise? • The proposed legislation requires Caltrans to annually report to the California Transportation Commission (CTC) on achievement of performance targets – the CTC will then report annually to the Legislature and the CTC may withhold funds from Caltrans if funds are not being appropriately spent. Similarly, the CTC will evaluate projects submitted by cities and counties for program funding and evaluate the success of the program in reducing deferred maintenance on local roads. Finally, the State Controller will also audit local government expenditures and will recover and/or withhold funds if not appropriately spent. *The Road Information Program (TRIP) – a nonprofit organization that focuses on surface transportation. 1 Funding Governor Brown’s Transportation Funding Plan Funding the Governor’s Proposal The Governor’s Transportation Proposal would provide over $36 billion in the first decade of implementation, with an additional $879 million in early loan repayments. These investments are funded from the following sources, which would cost the average motorist about 25 cents per day, or $7 per month: New Revenue: • Road Improvement Charge – implement a new annual road improvement charge as part of vehicle registration. The charge would be $65 per vehicle, including hybrids and electric vehicles, and would raise $20 billion over ten years. • Gasoline Excise Tax – stabilize the current rate at the five-year average of 18 cents for the price-based amount, eliminating the annual Board of Equalization adjustments – the total state gasoline excise tax would be 36 cents. This tax would be adjusted annually for inflation to maintain purchasing power. Over ten years, this change would generate $5 billion. • Diesel Excise Tax – increase the current rate by 11 cents per gallon (to a total of 24 cents per gallon) and index annually for inflation to maintain purchasing power. Over ten years, this change would generate $5 billion. 2 Governor Brown’s Transportation Funding Plan Existing Revenue and Reform: • Greenhouse Gas Reduction Fund – direct additional Cap and Trade auction proceeds to the Transit and Intercity Rail Program and a new Low Carbon Road Program. Funds would be appropriated through the annual budget process and over ten years would total $4 billion for the Transit and Intercity Rail Program and $1 billion for the Low Carbon Road Program. • Caltrans Reforms – Implement cost-saving reforms at Caltrans to generate $1 billion over ten years. Accelerated Loan Repayment: • Acceleration of $879 million in Outstanding Transportation Loans – would direct one- time outstanding loan repayments as follows: - $132 million for highway maintenance and rehabilitation - $265 million for the Transit and Intercity Rail Capital Program - $334 million for the Trade Corridor Investment Fund Program - $148 million to complete or reimburse projects programmed in the Traffic Congestion Relief Program. 3 Governor Brown’s Transportation Funding Plan ear Funding Detail 10-Y $ 2.01$ 2.01$ 2.01$ 2.01$ 2.01$ 2.01$ 2.01$ 2.01$ 2.01$ $2.01 120.1 ransportation Funding Proposal T ear #1 Y ear #2 Y ear #3 Y ear #4 Y ear #5 Y ear #6 Y ear #7 Y ear #8 Y ear #9 Y ear #10 Y 10-year 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 total Highway User Fee: $ 0.42$ 0.42$ 0.42$ 0.42$ 0.42$ 0.42$ 0.42$ 0.42$ 0.42$ 0.42$ 4.18 Charge a $65 per vehicle highway user fee. (30.9 million vehicles) ax:Diesel Excise T $ 0.02$ 0.04$ 0.06$ 0.08$ 0.09$ 0.12$ 0.14$ 0.16$ 0.18$ 0.87 1 cents over the current (1) Increase diesel excise tax by 1 $ - $ 0.42 $ 0.44 $ 0.45 $ 0.47 $ 0.49 $ 0.51 $ 0.53 $ 0.55 $ 0.57 $ 0.60 $ 5.05 13 cent per gallon rate. fects owners of larger trucks, including Largely af owners/operators of 450,000 commercial trucks. $ 10.1$ 0.21$ 0.32$ 0.44$ 0.55$ 0.67$ 0.79$ 0.91$ 1.04$ 5.04 (2) Index the diesel excise tax to Inflation. $ - ax: Total Diesel Excise T ax*:Index Gas Excise T $ 0.50$ 0.50$ 0.50$ 0.50$ 0.50$ 0.50$ 0.50$ 0.50$ 0.50$ 0.50 Eliminate annual adjustment to the excise tax rate and index the gas tax to $ 5.00 inflation - drivers would pay an average of $20 more per year over 10 years. rade: Cap and T $ 2.93$ 3.05$ 3.18$ 3.31$ 3.44$ 3.58$ 3.71$ 3.85$ 4.00$ $4.14 35.20 revenue that is not Allocate $500 million per year of the 40% of C&T $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10$ 1.00 continuously appropriated. ransportation Revenue: Ongoing T $ 0.13 $ 0.27 $ 0.33 $ 0.15 $ - $ - $ - $ - $ - $ $- 0.88 Caltrans Efficiencies: , CEQA, Public Private Partnerships Hiring flexibility $ 3.16$ 3.42$ 3.61$ 3.56$ 3.54$ 3.68$ 3.81$ 3.95$ 4.10$ $4.24 37.07 Pre-Proposition 42 loan early repayment: . TCRFA, $482 million $879 million total - $132 million SHA, $265 million PT otal: T 4 $ 0.40$ 0.40$ 0.40$ 0.40$ 0.40$ 0.40$ 0.40$ 0.40$ 0.40$ 0.40$ 4.00 $ 0.25$ 0.25$ 0.25$ 0.25$ 0.25$ 0.25$ 0.25$ 0.25$ 0.25$ 0.25$ 2.50 Expenditure Plan $ 11.1 Local $ 0.79$ 0.84$ 0.89$ 0.94$ 1.00$ 1.05 $ 1.16$ 1.22$ $1.28 10.28 ransit T $ 0.10$ 0.10$ 0.10$ 0.10$ 0.10$ 0.10$ 0.10$ 0.10$ 0.10$ 0.10$ 1.00 Local Partnership $ 1.54$ 1.59$ 1.64$ 1.69$ 1.75$ 1.80$ 1.86$ 1.91$ 1.97$ $2.03 17.78 Local Streets and Roads (40% of remiaining unallocated funds) Local Streets and Roads (Complete Streets/GHG reduction) $ 1.19$ 1.26$ 1.34$ 1.42$ 1.50$ 1.58$ 1.66$ 1.74$ 1.83$ $1.92 15.42 Subtotal: $ 0.20$ 0.20$ 0.20$ 0.20$ 0.20$ 0.20$ 0.20$ 0.20$ 0.20$ 0.20$ 2.00 State $ 1.39$ 1.46$ 1.54$ 1.62$ 1.70$ 1.78$ 1.86$ 1.94$ 2.03$ $2.12 17.42 SHOPP/Maintenance (60% of remaining unallocated funds) $ 0.22$ 0.22$ 0.22$ 0.22 $ 0.88 rade Corridors T $ - $ - $ - $ - $ - $ - Subtotal: Early Loan Repayment $ 0.10$ 0.10$ 0.10$ 0.10$ 0.10$ 0.10$ 0.10$ 0.10$ 0.10$ 0.10$ 1.00 TCRF Projects, SHOPP ransit, trade Corridors, Local T $ 3.25$ 3.37$ 3.50$ 3.63$ 3.54$ 3.68$ 3.81$ 3.95$ 4.10$ $4.24 37.08 ficiencies Caltrans Ef otal: T * BOE-adjusted gas tax is set at 5-year average of 18 cents (up 6 cents from July 1, 2015 level), revenue is not scored above because of unknown current-law future fluctuation, but relative to the May Revision forcast, would increase revenue $1.1 billion in 2016-17, with fluctuating amounts thereafter depenThis revenue is distributed by current-ding on gasoline prices. , and 44% for the STIPlaw formula, 44% for cities and counties, 12% for the SHOPP .10-14-2015.xlsransportation Revenue.10-yearTMacintosh HD:Users:ctsteve:Documents:Jobs:Jobs_A-G:gov_transfund_plan_f:Detailed Benefits Governor Brown’s Transportation Funding Plan 10-Year Benefits of the Governor’s Proposal The Governor’s Transportation funding framework would provide over $36 billion* in the first decade of implementation, with an additional $879 million in early loan repayments.
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