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Commission approves submission of preliminary list to FHWA to reallocate $43M in unobligated earmarks
Summary
Caltrans told the commission it identified $43 million in unobligated federal earmarks from FY2003–2006; about $21.1 million cannot meet a December 31 obligation deadline and the commission approved the department’s proposed alternate projects and submission to FHWA by October 1.
Caltrans reported to the California Transportation Commission that the Federal Highway Administration has authorized states to reallocate unobligated balances from fiscal‑year 2003–2006 appropriations and that California identified about $43 million in such funds. The department said 38 original project sponsors will be able to obligate their earmarked balances by the deadline but 33 sponsors reported they cannot obligate roughly $21.1 million in time.
Denix Zambe (recorded in the transcript as Denix Ambia), Caltrans Division Chief for Local Assistance, told commissioners the department surveyed project sponsors, asked regional agencies to nominate alternate projects able to obligate within the federal time frame, and received 22 alternate projects that could use the $21.1 million. The department set an internal November 1 deadline for agencies to submit complete requests for obligation; if an agency misses that deadline, Caltrans said it will reassign the money to state projects so the funds are not lost.
Staff recommended, and the commission approved, submitting the preliminary list of original and alternate projects to FHWA by October 1 so California could compete for August redistribution funds made available by other states. Commissioners asked for follow-up reporting on why certain local sponsors could not obligate earlier and requested the department provide more detail at the October meeting.
Why it matters: The FHWA memo enabling reallocation creates an opportunity for California to use otherwise dormant earmark balances and to compete for additional federal redistribution dollars. The reallocation is time‑sensitive—funds must be obligated by December 31 to be eligible for the redistribution.
Discussion vs. decision: The commission approved staff’s recommendation to submit the two lists (projects that will obligate and alternates for the $21.1 million) to FHWA by the federal October 1 preliminary‑list deadline. Commissioners also directed staff to report back with explanations from project sponsors who could not obligate the funds.
What comes next: Caltrans will submit the preliminary lists to FHWA on October 1 and will collect obligation requests from the alternate project sponsors by November 1. If obligations are not submitted by the internal deadline, Caltrans plans to reallocate the remaining amounts to state projects to preserve the federal funds.
