Infrastructure Bond Update
Background
California voters will be
asked to consider a package of infrastructure bonds on the November 2006 ballot.
The measures relating to transportation are:
-
Proposition 1A which would enhance
protections for existing transportation funds;
-
Proposition 1B which would provide $19.9
billion in general obligation bonds for transportation improvements; and
-
Proposition 1C which would provide funding
for housing projects near transportation facilities.
Metro estimates that over $5 billion could be
allocated to Los Angeles County with $1.9 billion to be shared by the County,
the 88 cities within the County, Metro and other transit operators through
existing funding formulas. The following outlines the provisions of each
measure:
PROPOSITION 1A
Transportation Funding Protection Legislative Constitutional Amendment
In 2002, voters approved a measure (Proposition 42) which committed the existing
state sales tax on gasoline, about $1.3 billion per year for transportation
purposes. These funds are allocated to congestion relief projects, the state
highway system, local street repair and public transit. However, Proposition 42
included a provision that allows these funds to be suspended when the State of
California experiences budget deficits. To date, over $2 billion have been
suspended.
Proposition 1A would
discourage suspension of these funds by:
-
Authorizing suspension of Proposition 42 funds
only if the Governor issues a proclamation, the legislature concurs by a 2/3
vote and passes a bill that requires the funds be repaid within a three-year
period;
-
Stipulating that Proposition 42 funds may only
be suspended twice in a ten-year period and may not be suspended while a
previous loan is still outstanding;
-
Allowing for a ten-year repayment period of
previous Proposition 42 loans.
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PROPOSITION 1B
Highway Safety, Traffic Reduction, Air Quality and Port Security Act of 2006
Proposition 1B is the transportation infrastructure bond. This General
Obligation bond totals $19.925 billion and would be allocated to congestion
relief, public transit, goods movement facilities,
transportation safety and security, air quality, port security,
street and road repair.
The measure proposes to allocate the funds in the following manner:
Corridor Mobility Improvement ($4.5 billion)
These funds would be allocated by the
California Transportation Commission to highly congested travel corridors in
the State. Projects in this category must be a high priority; be able to
start construction by 2012, improve mobility in a highly congested corridor
by improving travel times and reducing vehicle hours of delay, connect the
state highway system and improve access to jobs, housing, markets and
commerce. For competing projects, the CTC must evaluate the quantifiable air
quality benefits and safety benefits. The CTC must allocate funds consistent with
North/South split which guarantees that Southern California receives 60% of
these funds and Northern California receives 40%.
State Route 99 ($1 billion)
State Route 99, located in the Central Valley, will receive these funds specifically for safety, operational
enhancements, or capacity improvements.
California Ports Infrastructure, Security and
Air Quality ($3.1 billion)
Of this total amount $2 billion will be available for infrastructure
improvements along trade corridors that have high volumes of freight movement:
$1 billion will be allocated by the State Air Resources Board for emission
reduction from freight movement along trade corridors and; $100 million will be
allocated by the
Office of Emergency Services as grants for ports, harbor and
ferry terminal security enhancements.
-
The CTC will allocate these funds to projects
that include but are not limited to; highway capacity improvements and
operational improvements that more efficiently accommodate the movement of
freight from seaports, navigable inland waterways, land ports of entry and
airports.
-
Freight rail improvements that enhance the
ability to move freight (from the same as above) including projects that
separate rail lines from highways or roadways, or move freight through
mountainous areas.
-
Enhance the capacity and efficiency of ports.
-
Truck corridor improvements including truck
toll facilities.
-
Border access improvements.
-
Surface improvements to enhance the movement
of freight from airports.
State Transportation Improvement Program ($2
billion)
This category augments the State Transportation Improvement Program (STIP)
that funds transportation projects. These funds are subject to current law which
allocates funds based on county population and highway miles.
Public Transportation, Modernization
Improvement and Service Enhancement ($4 billion)
This program will allocate $3.6 billion for new transit projects including intercity rail projects and
for commuter or urban rail operators, bus operators, waterborne transit
operators for rehabilitation, safety or modernization improvements, service
enhancements and new capital projects. The remaining $400 million is for
intercity rail, of which $125 million must be used to purchase new cars and
locomotives.
Transit System Safety, Security and Disaster
Response ($1 billion)
Funds in this category will be allocated to transportation agencies for capital projects that
enhance safety, security and protect against the threat of disaster
by developing safe and secure response transportation systems.
State-Local Partnership Program ($1 billion)
The funds provide a state dollar-to-dollar match to locally funded
transportation improvements. This provides incentives for local governments to
invest in transportation improvements. The California Transportation Commission will
allocate these funds over a five-year period.
Local Bridge Seismic Retrofit ($125
million)
The funds will be used as an 11.5 percent local to match Federal Highway
Bridge Replacement and Repair funds for seismic work on local bridges, ramps and
overpasses.
Highway-Railroad Crossing Safety ($250
million)
The funds would be allocated by the State Department of Transportation for the
construction of high priority grade separation and railroad crossing safety
improvements pursuant to current law.
Highway Safety Rehabilitation and Preservation
($750 million)
This program will fund the State’s Highway Operation Preservation Program.
-
$250 million will be set aside
to fund a Signal Synchronization program to be developed by Caltrans.
School Bus Replacement Program ($200 million)
These funds will be used reduce diesel emissions by retrofitting and replacing
buses.
Local Streets and Road Improvement, Congestion
Relief and Traffic Safety Account of 2006 ($2 billion)
The funds shall be used for street and road repair projects that reduce
traffic congestion, improve traffic flow and increase traffic safety.
-
$1 billion will be allocated to counties 75%
based on vehicles and 25% on maintained county roads.
-
$1 billion will be allocated to cities based
on proportionate population.
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PROPOSITION 1C
Housing and Emergency Shelter Trust Fund Act of 2006
Proposition 1C is the housing and emergency shelter bond that provides $2.85
billion for a variety of housing and emergency shelter projects. Within this
measure are two provisions that will fund housing projects located near public
transit. The first provides $850 million to Infill Housing projects which
supports the location of housing near transportation facilities. The second
provision provides $300 million for the Transit Oriented Development projects
which specifically promotes the development of housing near public transit.
If you have any questions, please feel free to
contact Government Relations Manager Michael Turner at 213.922.2122.
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