BILL ANALYSIS Ó SENATE COMMITTEE ON TRANSPORTATION AND HOUSING Senator Jim Beall, Chair 2015 - 2016 Regular Bill No: SB 1066 Hearing Date: 4/12/2016 ----------------------------------------------------------------- |Author: |Beall | |----------+------------------------------------------------------| |Version: |2/16/2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Manny Leon | |: | | ----------------------------------------------------------------- SUBJECT: Transportation funds: fund estimates DIGEST: This bill requires State Transportation Improvement Program (STIP) fund estimates prepared by the California Transportation Commission (CTC) and the Department of Transportation (Caltrans) to identify and include federal funds received under the Federal FAST Act. ANALYSIS: At the federal level, the Fixing America's Surface Transportation Act (FAST Act) is a multi-year transportation program that provides funding to state and local transportation agencies and programs. Existing law: establishes the STIP program, which provides state and federal funds for transportation capital improvement projects programmed by Caltrans and regional transportation agencies, as specified. Requires Caltrans to submit to the CTC an estimate of state and federal funds reasonably expected to be available for future programming over the 5-year period of each STIP, and requires the CTC to adopt a fund estimate in that regard. This bill requires the STIP fund estimate prepared by Caltrans and CTC to identify and include federal funds derived from apportionments made to the state under the FAST Act. SB 1066 (Beall) Page 2 of ? COMMENTS: 1)Purpose. The author introduced this bill to provide clarification in existing law that the STIP fund estimate prepared by Caltrans and CTC include the funding allocations specified in the recently enacted Federal FAST Act. 2)Federal FAST ACT. On December 4, 2015, President Obama signed the FAST Act, authorizing federal highway, transit, safety, and rail programs for the next five federal fiscal years at a cost of approximately $305 billion. The bill is the first long-term reauthorization of the federal surface transportation program since the enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act: A Legacy for Users in 2005. The $305 billion authorized under the FAST Act includes approximately $225 billion for the federal-aid highway program, approximately $61 billion for federal transit assistance, and approximately $19 billion for other programs. Of the transit funds, nearly $49 billion is distributed to regions and transit providers by formula, while the remaining $12 billion is available for discretionary grants, mostly for capital improvements and grants for implementation of positive train control. Most highway program funds are apportioned to states, also by formula. 3)STIP and the STIP fund estimate. STIP is a multi-year capital improvement program of transportation projects on and off the state highway system, funded with revenues deposited in the State Highway Account. The STIP is composed of two categories: 75% of STIP funds go toward projects in the Regional Transportation Improvement Program (RTIP) for regional transportation agencies and 25% goes to the Interregional Transportation Improvement Program (ITIP) administered by Caltrans. Each STIP will cover a five year period and add two new years of programming capacity. The STIP fund estimate is a biennial estimate of all resources available for the state's transportation infrastructure over a five-year period. The fund estimate establishes the program funding levels for the STIP and also the State Highway Operation and Protection Program (SHOPP). Specifically, the STIP fund estimate includes a forecast, in annual increments, SB 1066 (Beall) Page 3 of ? of all federal and state funds available for programming in the updated STIP and a plan to manage these funds over the subsequent five years. The 2016 STIP fund estimate covers the period from fiscal years 2016-17 through 2020-21, with 2015-16 included as the base year. This bill ensures that future fund estimates (i.e., the 2018 fund estimate) prepared by Caltrans and CTC consider and incorporate the changes in programmatic and funding allocations enacted under the Federal FAST Act. FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No POSITIONS: (Communicated to the committee before noon on Wednesday, April 6, 2016.) SUPPORT: San Bernardino Associated Governments California Asphalt Pavement Association OPPOSITION: None received -- END --