Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2652

Introduced by Assembly Member Linder

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(Coauthors: Assembly Members Allen, Bigelow, Conway, Beth Gaines, Gorell, Hagman, Harkey, Jones, Melendez, Olsen, Patterson, Wagner, and Wilk)

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February 21, 2014

begin delete An act to amend Section 167 of the Streets and Highways Code, relating to transportation. end delete begin insert An act relating to state revenues, and making an appropriation therefor. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2652, as amended, Linder. begin delete Transportation funds. end delete begin insert Increased revenues: appropriation. end insert

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The California Constitution requires the Governor, within the first 10 days of each calendar year, to submit to the Legislature a budget for the ensuing fiscal year containing itemized statements for recommended state expenditures and estimated state revenues. Existing law requires the Director of Finance to provide to the Legislature, on or before May 14 of each year, specified information, including an estimate of General Fund revenues for the current fiscal year and for the ensuing fiscal year.

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This bill would require the Director of Finance to calculate any increase between the General Fund revenue estimate for the 2013-14 fiscal year in the Governor’s Budget Summary 2014-15 and the estimate of General Fund revenue for the 2013-14 fiscal year submitted by the Director of Finance on or before May 14, 2014. The bill would require the Director of Finance to calculate any increase between the General Fund revenue estimate in the budget for the 2014-15 fiscal year submitted by the Governor and the estimate of General Fund revenues for the 2014-15 fiscal year submitted by the Director of Finance on or before May 14, 2014. The bill would prohibit General Fund appropriations other than those made by this bill for the 2013-14 and 2014-15 fiscal years from exceeding the amount of General Fund revenues in the budget approved for the 2013-14 fiscal year and, for the 2014-15 fiscal year, in the budget submitted by the Governor. The bill would appropriate the amount of any increase in General Fund revenues calculated by the Director of Finance necessary to meet the state’s minimum funding obligation pursuant to Section 8 of Article XVI of the California Constitution to the Controller for apportionment to school districts and community college districts. If any funds remain after this appropriation, the bill would appropriate 50% of the remaining funds to the Budget Stabilization Account and would appropriate 50% of the funds, up to $2.534 billion, to specified transportation funds and accounts for immediate repayment of outstanding loans made from those transportation funds and accounts to the General Fund. The bill would appropriate certain amounts repaid to specified transportation funds and accounts for local street and road purposes, to be apportioned by the controller according to a specified formula. The bill would appropriate any funds remaining after these appropriations to the Budget Stabilization Account.

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Existing law requires funds in the State Highway Account to be programmed, budgeted, and expended to maximize the use of federal funds and according to a specified sequence of priorities. Existing law requires the Department of Transportation to provide certain information to the Legislature to substantiate the department’s proposed capital outlay support budget.

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This bill would make nonsubstantive changes to these provisions.

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Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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It is the intent of the Legislature to provide funding
to repay as much of the outstanding transportation loan balances
to the General Fund as prudently possible, while providing full
funding for Proposition 98 education purposes and greater
flexibility for future “rainy-day” funds.

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begin insert SEC. 2. end insert   

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(a) For the 2013-14 fiscal year, the Department of
Finance shall calculate any increase between the General Fund
revenue estimate in the Governor’s Budget Summary 2014-15
published on January 10, 2014, and the General Fund revenue
estimate for the 2013-14 fiscal year submitted by the Director of
Finance pursuant to subdivision (e) of Section 13308 of the
Government Code.

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(b) For the 2014-15 fiscal year, the Department of Finance
shall calculate any increase between the General Fund revenue
estimate in the budget submitted by the Governor to the Legislature
pursuant to subdivision (a) of Section 12 of Article IV of the
California Constitution and the General Fund revenue estimate
submitted by the Director of Finance for the 2014-15 fiscal year
pursuant to subdivision (e) of Section 13308 of the Government
Code.

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(c) For the 2013-14 and 2014-15 fiscal years, the sum of the
appropriations made in the budget bill and in other bills providing
for appropriations related to the budget bill, and any other
enactment other than this bill, shall not exceed the sum of the
amount of General Fund revenues appropriated in the budget
approved for the 2013-14 fiscal year and, for the 2014-15 fiscal
year, the amount of General Fund revenues proposed to be
appropriated in the budget submitted by the Governor pursuant
to subdivision (a) of Section 12 of Article IV.

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(d) The amount of any increase in General Fund revenue
calculated by the Department of Finance pursuant to subdivision
(a) for the 2013-14 fiscal year and pursuant to subdivision (b) for
the 2014-15 fiscal year is hereby appropriated as follows:

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(1) First, the amount necessary to meet the state’s minimum
funding obligation to school districts and community college
districts pursuant to Section 8 of Article XVI of the California
Constitution for the fiscal year, as determined based on the
estimate pursuant to subdivision (e) of Section 13308 of the
Government Code, is appropriated to the Controller for
apportionment to school districts and community college districts.

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(2) Any funds remaining after the appropriation made pursuant
to paragraph (1) shall be appropriated as follows:

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(A) Fifty percent of the remaining funds is transferred to the
Budget Stabilization Account pursuant to Section 20 of Article XVI
of the California Constitution.

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(B) Fifty percent of the remaining funds, not to exceed two
billion five hundred thirty-four million dollars ($2,534,000,000),
shall be transferred to the transportation funds and accounts, as
detailed in the table entitled “Status of Outstanding Transportation
Loans, as of September 30, 2013” in Appendix D of the Department
of Transportation’s Fiscal Year 2013-14 First Quarter Finance
Report, for immediate repayment of outstanding loans made from
those transportation funds and accounts to the General Fund. The
amounts repaid to the State Highway Account, the Transportation
Congestion Relief Fund, and the Highway Users Tax Account are
hereby appropriated for local street and road purposes, to be
apportioned by the controller pursuant to the formula in
subparagraph (c) of paragraph (3) of subdivision (a) of Section
2103 of the Streets and Highways Code.

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(C) Any remaining funds shall be transferred to the Budget
Stabilization Account pursuant to Section 20 of Article XVI of the
California Constitution.

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SECTION 1.  

Section 167 of the Streets and Highways Code
is amended to read:

167.  

(a) Funds in the State Highway Account in the State
Transportation Fund shall be programmed, budgeted subject to
Section 163, and expended to maximize the use of federal funds
and shall be based on the following sequence of priorities:

(1) Operation, maintenance, and rehabilitation of the state
highway system.

(2) Safety improvements where physical changes, other than
adding additional lanes, would reduce fatalities and the number
and severity of injuries.

(3) Transportation capital improvements that expand capacity
or reduce congestion, or do both.

(4) Environmental enhancement and mitigation programs.

(b) With respect to the funds in the State Highway Account, in
the Public Transportation Account, and in the Passenger Rail Bond
Fund, the proposed budget shall be organized on a program basis.
The proposed budget shall list the proposed expenditures for the
transportation program under the following program elements:

(1) Administration.

(2) Program development.

(3) Maintenance.

(4) State highway operation and protection.

(5) Local assistance.

(6) Interregional improvements.

(7) Regional improvements.

(8) Environmental enhancement and mitigation programs.

(c) State operations expenditure amounts of the department for
interregional and regional transportation improvement projects
shall be listed as required by subdivision (b) of Section 14529 of
the Government Code, but those amounts other than those for the
acquisition of rights-of-way, construction, and construction support
shall not be subject to allocation by the commission.

(d) To align the annual budget with the adopted state
transportation improvement program, the department may submit
to the Department of Finance revised capital outlay support and
capital outlay budget estimates as part of its May Revision process.
Budget proposals related to these changes shall be provided to the
Legislature no later than May 1.

(e) The budget shall not include specific appropriations for
specific transportation improvement projects, and the Legislature
shall not enact legislation containing specific individual
transportation projects.

(f) The basis for defining major and minor capital outlay projects
shall be established by the commission.

(g) The Legislative Analyst shall prepare an analysis of the
proposed expenditures for each program element as a part of the
budget analysis.

(h) The department shall submit to the Legislative Analyst, the
Senate Committee on Budget and Fiscal Review, and the Assembly
Committee on Budget, on an annual basis, supplemental
information to substantiate the department’s proposed capital outlay
support budget. The information shall be provided no later than
May 1 of each year, and may be provided at an earlier date. The
information shall include, but not be limited to, the following:

(1) A list of projects for which the department will perform
capital outlay support work in the budget year. For each project,
the department shall include:

(A) The planned project support budget for support of
environmental, design, right-of-way, and construction phases.

(B) The planned capital costs, including construction capital
costs and right-of-way capital costs.

(C) The estimated or actual construction start date and
completion date.

(D) The name and year of the state transportation program in
which the project is programmed, if applicable.

(E) Total prior fiscal year expenditures for capital outlay support.

(F) The number of full-time equivalent positions requested to
perform support of environmental, design, right-of-way, and
construction work in the fiscal year of the budget request.

(G) Milestones of project work by phases that are planned to
be completed in the fiscal year of the budget request.

(H) The ratio of support to capital costs based on current
programming.

(2) The capital-to-support ratio for all projects completed in the
prior fiscal year in each program in each district.

(3) The current total number of authorized and vacant positions
in the capital outlay support program in headquarters and in each
district.

(4) A five-year projection of the department’s staffing needs to
support the state’s transportation capital programs and any
workload performed by the department related to federal or local
funding for highway capital projects.

(5) The average cost of a personnel-year equivalent in each
district based on the department’s existing contracts for capital
outlay support work performed by a private company under
contract with the department. For each average cost, the department
shall provide a description of what factors are included in that cost.

(6) The average cost of a state staff personnel-year in the capital
outlay support program in each district and in headquarters. The
cost shall include the salary and wages, benefits, program overhead,
administrative overhead, and other associated costs. The
department shall provide a description of each component of the
average cost.

(7) A summary of expected capital outlay support workload for
the budget year that includes the following:

(A) The total full-time equivalents requested for each type of
the following activities: environmental, design, right-of-way, and
construction.

(B) The total full-time equivalents requested for each type of
project, including, but not limited to, the state transportation
improvement program, the state highway operation and protection
program, bond programs, regional and local agency partnership
workload, and any other program.

(8) The total number of projects with requested resources, as
well as the number of projects in which the department is limited
to an oversight role.

(9) The number of milestones scheduled, including
environmental, design, right-of-way, and construction deliverables,
as well as the number of projects expected to begin construction
and reach completion.

(10) A summary for the most recently completed fiscal year for
the following:

(A) Full-time equivalents and related funding expended,
including support of environmental, design, right-of-way, and
construction activities.

(B) Approved and filled positions as of the end of the fiscal
year.

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