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CTC: Draft STIP fund estimate shows sharp shortfall; commissioners press Legislature during special session
Summary
The California Transportation Commission reviewed a draft fund estimate that projects a significant reduction in State Transportation Improvement Program (STIP) capacity and voted to instruct staff to notify legislative leaders and the public about projects at risk as the governor's special legislative session on transportation funding begins.
The California Transportation Commission reviewed a draft fund estimate on allocation capacity for the State Transportation Improvement Program and related accounts and found an immediate shortfall that could delay project awards and reduce deliverable projects in fiscal year 2015'16.
The commission's draft shows a roughly 23 percent reduction in STIP capacity, a decline the staff summed at about $430 million for the five-year fund estimate. Commissioner Benjamin Arp, speaking during the discussion, said the shortfall is effectively the amount of money available for capacity projects in the state and urged the commission to make the consequences clear to policymakers and the public.
The commission voted to direct staff to communicate the funding shortfall and its likely effects to legislative leadership and other stakeholders. The motion, made and seconded on the floor, passed with the ayes prevailing.
Why it matters: STIP funds support regional and local capital projects including highways, local streets and roads, and some SHOP (state highways) commitments. The draft fund estimate assumes current law for price-based excise tax revenue and modest federal growth; under those assumptions the STIP shows little net gain over the five-year horizon and a marked drop in near-term capacity. Commissioners said the shortfall risks delaying projects that have been in regional programs for years.
Details: Staff told the commission the draft fund estimate assumes a return to higher price-based excise tax rates by later years of the five-year window but that short-term revenue is materially lower. The department's draft also includes a modest upside on the Public Transportation Account driven primarily by diesel-related revenues and loan repayments.
Commissioners emphasized two practical consequences if revenues remain at current law levels: regions will need to triage which projects can be delivered, and the commission may be unable to approve allocations for some projects already in the STIP. Commissioner Arp argued for publicizing specific projects at risk to make the issue concrete for legislators and the public.
Context and next steps: The discussion took place as the governor called an extraordinary/special session of the Legislature on transportation funding. Staff and commissioners said they would use the special session and potential federal action to seek durable revenue solutions and to press for efficiencies and streamlining. The commission also scheduled an informational workshop on the draft fund estimate in July and said adoption of the final fund estimate could be delayed if legislation or new federal action materially changes the revenue picture.
The commission did not adopt the fund estimate at the meeting; it reviewed the draft and directed staff to follow up with the Legislature and the public.
Ending: The commission positioned the draft fund estimate and its vote to notify the Legislature as an effort to press for a quicker resolution of the state's transportation funding gap, while keeping open the option to delay a final adoption if the special session or federal action produces new revenue assumptions.
