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STA reports $28 million in STIP awards after county-by-county MOU kept most state funds in Sacramento County

5880485 · September 19, 2025
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Summary

STA staff described a new memorandum of understanding that kept county shares of State Transportation Improvement Program (STIP) funds in Sacramento County, producing $28 million in awards for local projects and improving predictability for agencies; one application failed to meet minimum scoring thresholds.

Staff told the board that a state policy change and a county-level memorandum of understanding allowed Sacramento-area agencies to keep county shares of STIP funds largely within Sacramento County, producing more predictable outcomes and $28,000,000 in awards for local projects.

STA staff said that under the new arrangement 90% of the county's STIP share stays within Sacramento County and 10% is pooled for regional competition. "So that meant that there was $28,400,000 available for projects in Sacramento County," the presenter said, adding that $28,000,000 ultimately was awarded and one project did not meet the minimum scoring threshold.

The staff presentation explained that the memorandum of understanding (MOU) set suballocations for jurisdictions'the city of Sacramento, unincorporated Sacramento County, Rancho Cordova, Folsom and others'and allowed agencies to apply for the portion of funds allocated to their jurisdiction rather than competing for a single large regional pot. Staff described frequent coordination, including biweekly meetings, to help agencies refine applications and avoid leaving money unused.

Examples cited by staff included a $1.2 million award to the city of Folsom for a trail project that initially lacked usage data; other agencies reviewed and helped strengthen the application. The city of Sacramento received a $9.1 million award for its Marshall Boulevard Vision 0 project after other jurisdictions agreed to advance Sacramento's project now and reclaim funds in a future round, staff said. Typical awards in past cycles were roughly $4 million; the MOU allowed several jurisdictions to concentrate funds to advance larger, ready projects.

STA staff credited SACOG for making the state policy change and said Sacramento County was the only county in the region to implement the formal MOU; other counties or subregions tried less formal approaches and in some cases left money on the table.

Board member Kalamantes thanked staff and local public-works directors for the collaboration that produced stronger applications. The item was informational; the board took no formal action.