Total expenditures from state funds for transportation programs are proposed to be slightly higher in 1996-97 than estimated current-year expenditures. The increase is due mainly to increased expenditures for highway capital outlay purposes.
For traffic enforcement, the budget proposes a slight increase in the expenditures of the California Highway Patrol, primarily to support an increase in the number of traffic officers and to cover higher salary and benefit costs resulting from the recent collective bargaining agreement with the state. The expenditure level of the Department of Motor Vehicles is also proposed to increase slightly in order to implement various new legislation.
The budget proposes total state expenditures of about $5 billion for transportation programs in 1996-97. This is an increase of $235.8 million, or 5 percent, over estimated expenditures in the current year.
Figure 1 (see next page) shows that state-funded transportation expenditures increased by $1.9 billion since 1989-90, representing an average annual increase of 7 percent. When adjusted for inflation, these expenditures increased by an average of 4 percent annually. In addition, Figure 1 shows that transportation expenditures have increased as a share of total state expenditures over the period. This change is largely the result of the passage of the Transportation Blueprintlegislation in 1990 which provided additional state funds for highway and mass transportation programs. In 1996-97, proposed transportation expenditures will constitute about 8.5 percent of all state expenditures.
Of the 1996-97 state transportation expenditures, about $3.8 billion is proposed for programs administered by the state, and about $978.3 million is for subventions to local governments for streets and roads. Another $208 million will be for debt-service payments on rail bonds issued under Propositions 108 and 116 of 1990.
Figure 2 shows spending for the major transportation programs in detail. Specifically, the budget proposes expenditures of $5.5 billion (from all fund sources) for the Department of Transportation in 1996-97--an increase of $183.6 million (3.5 percent) above estimated current-year expenditures. The higher expenditure level reflects an increase of about $206 million in state-funded expenditures and reimbursements, offset by a decrease of $22.1 million in federally funded expenditures.
Spending for the CHP is proposed to increase in 1996-97 by $24.9 million, about 3.3 percent. The increase will be funded from the Motor Vehicle Account, and will cover primarily higher salary and benefit costs as well as fund 180 currently vacant traffic officer positions.
For the DMV, the budget proposes expenditures of $531 million, about 2 percent higher than in the current year. The increase will be funded with a combination of Motor Vehicle Account revenues and revenues from motor vehicle license fees.
Transportation Budget Summary
Selected Funding Sources
1994-95 Through 1996-97
(Dollars in Millions)
|Actual 1994-95||Estimated 1995-96||Proposed 1996-97||Amount||Percent|
|Department of Transportation|
|California Highway Patrol|
|Motor Vehicle Account||$632.3||$676.4||$705.5||$29.1||4.3%|
|Department of Motor Vehicles|
|Motor Vehicle Account||$316.3||$335.3||$340.5||$5.2||1.6%|
|Motor Vehicle License Fee Account||163.6||166.2||171.0||4.8||2.9|
|State Transportation Assistance|
|Transportation Planning and|
Additionally, the budget proposes an increase in the State Transportation Assistance (STA) program in 1996-97 to reflect higher projected revenues into the Transportation Planning and Development (TP&D) Account. The STA program provides funds to local transportation agencies to operate public mass transit systems. Annual funding of the program is determined based on a statutory formula, and the level varies depending on anticipated revenues into the TP&D Account.
Figure 3 presents the major budget changes proposed for 1996-97 in various transportation programs.
As the figure shows, for the Department of Transportation the budget proposes to increase highway capital outlay expenditures by about $163.6 million over the estimated current-year level. Additionally, the budget proposes a $28.9 million increase to pay for merit salary increases and price increases. The budget also includes an increase of $7.4 million to accommodate increased highway maintenance workload and an increase of $3.8 million to pay for tort payments.
The budget proposes a reduction of $17.5 million in highway capital outlay support (design and engineering) as a result of doing less reimbursed work for local governments as well as a reduction in state transportation improvement workload and anticipated future efficiencies which have yet to be implemented. The budget also proposes to eliminate state support of the Rideshare program.
For the CHP, the budget proposes $7.3 million to fund an additional 180 traffic officer positions which are currently vacant. This is the last increment of a three-year effort to increase the number of traffic officers. The budget also proposes to eliminate the Salvage Vehicle Inspection Program. This program required that all "salvage" vehicles, as specified, be inspected by the CHP prior to registration by the DMV. Because of the unanticipated heavy inspection workload, Ch 684/95 (SB 549, Alquist) placed a moratorium on further inspection. Additionally, the budget proposes to eliminate the California Motorcyclist Safety Program. Under this program, the CHP contracts with a private vendor to provide motorcyclist training and public awareness programs. Instead of contracting for the Motorcyclist Safety Program, the budget proposes that motorcycle driving schools and driving instructors be licensed by the DMV.
For the DMV, the budget requests $5 million to implement various new legislation. It also proposes $1.9 million in order to initiate a multiyear project to redesign the department's business practices and information systems.
Proposed Major Changes for 1996-97
|$163.6~million for highway capital improvements|
|$28.9 million to pay for higher salaries and operating expenses|
|$7.4 million for increased highway maintenance workload|
|$3.8 million for increased tort payments|
|$17.5 million in highway project design and development|
|$14.4 million to eliminate funding for Rideshare program|
|California Highway Patrol||Requested:||$790.9 million|
|$15.2~million to pay higher salary and benefit costs|
|$7.3 million to fund 180 vacant traffic officer positions|
|$4.3 million to replace telecommunications equipment|
|$4.5 million to eliminate Salvage Vehicle Inspection Program and California Motorcyclist Safety Program|
|$5 million to implement various new statutes|
|$1.9~million to redesign business practices|
|$1.8 million to pay higher costs of verifying legal presence of driver license applicants|
|$1 million to extend driver test pilot program|
|a Includes expenditures from Propositions 108 and 116 bond funds.|
Return to LAO Home Page