California Transportation Commission hears federal funding warning, state cap-and-trade boost for transit

The California Transportation Commission on the morning of its Fresno meeting heard federal and state officials warn of near-term federal funding uncertainty while announcing larger-than-expected state cap-and-trade dollars for transit grants and progress on several Caltrans projects.

Federal Highway Administration and Caltrans officials told commissioners that MAP-21 authorizing legislation has been extended only through July and that the Highway Trust Fund could force a partial suspension of payments if Congress and the president do not act. "If nothing is done by July ... we would probably stop advertising projects at that point," Caltrans Director Malcolm Dougherty said, adding that federal funds account for roughly 25 percent of project dollars and amount to about $3.5 billion a year for the state.

The Federal Highway representative, Vince Milmano, told the commission the situation involves two different pieces: the authorization (the authorizing legislation) and the Highway Trust Fund that pays bills. He said the Highway Trust Fund faces a threshold (about $4 billion) that could trigger measures to reduce reimbursements to states if it drops below that level in mid-summer.

At the state level, Secretary Kelly said the governor's May revise increased projected cap-and-trade revenues substantially since January, and the administration now expects the transit grant program funded by cap-and-trade to grow from $125 million (January estimate) to about $290 million for the coming year. Kelly said the administration and legislative leaders are discussing a longer-term transportation funding plan this year and that the administration expects to award a first round of competitive transit grants as early as June.

Caltrans Director Dougherty highlighted recent project completions, including an 8-mile HOV project on Interstate 215 in the Inland Empire that used innovative construction methods and was funded in part by Proposition 1B savings. He noted a near-completion widening of a San Joaquin River bridge (six-lane project) funded by Proposition 1B bond dollars as well. Dougherty also briefed commissioners on Caltrans' drought actions to reduce water use on landscaping and the department's continued focus on Disadvantaged Business Enterprise (DBE) goals and tribal outreach.

Regional leaders from Fresno and the San Joaquin Valley described local projects and requests for state support. Fresno officials presented the State Route 180 Greater Ramp project (total budget presented as $66,700,000, funded largely by SHOPP, Measure C and a regional mitigation fee) and said they will request an advance of construction programming to earlier fiscal years. Fresno also described a planned SR 180 East four-lane expressway segment estimated at about $49,500,000 that officials said is ready to construct.

The commission also heard from rural and self-help county representatives who urged preservation of a maintenance focus in pending state legislation (SB 16 in discussion) and urged metrics that reflect rural travel, tourism and agricultural needs in the interregional strategic plan.

Votes at the meeting were routine: commissioners approved March 26 minutes, accepted commissioner compensation memos, and approved the consent calendar after chair calls for motions and confirmation from a commissioner on the phone.