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The 2024-25 Spending Plan: Transportation
The 2024-25 Spending Plan: Transportation
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September 10, 2024
The 2024-25 Spending Plan
Transportation
Overview
As shown in Figure 1, the budget package provides a total of
$30.4 billion for transportation-related programs in 2024 25, including
for the California Department of Transportation (Caltrans), California
State Transportation Agency, local streets and roads (shared revenues),
California Highway Patrol (CHP), Department of Motor Vehicles (DMV), and
High-Speed Rail Authority (HSRA). This total reflects a net decrease of
$4.5 billion (13 percent) compared to estimated 2023 24 expenditure
levels. This year-to-year change is primarily due to large amounts of
one-time funds from previous budget packages that were available for
expenditure in the prior year, particularly from the General Fund.
Below, we summarize some of the major revisions made to previous budgets
and spending plans to address the state s General Fund budget shortfall.
We then identify the other most notable changes made to transportation
program budgets.
Figure 1
Transportation Expenditures Summary
(In Millions)
2022 23
Actual
2023 24
Estimated
2024 25
Enacted
Totals
$26,380
$34,843
$30,367
By Department/Program
Caltrans
$14,062
$15,256
$15,318
Local streets and roads
3,164
3,477
3,617
California Highway Patrol
2,950
3,328
3,219
General obligation bond debt service
1,693
1,690
1,811
Department of Motor Vehicles
1,596
1,517
1,489
High Speed Rail Authority
1,343 a
1,787 a
1,144
State Transit Assistance
1,342
1,368
1,279
Transportation Agency
218
6,397
2,468
Transportation Commission
9
11
11
Board of Pilot Commissioners
3
9
9
High Speed Rail Authority OIG
1
1
3
By Funding Source
Special funds
$17,790
$21,854
$21,455
Federal funds
6,076
6,582
6,901
General Fund
1,317
4,887
1,925
Bond funds
1,196
1,519
86
a Based on High Speed Rail Authority’s expenditure reports.
Caltrans = California Department of Transportation and OIG = Office of the Inspector General.
Revisions
to Prior Budget Packages and Spending Plans
Makes Some Modifications to Address General Fund
Condition, Maintains Majority of Previous Augmentations Provided to
Transportation Programs. Recent budget packages planned
for significant multiyear General Fund augmentations for transportation
programs, with a smaller portion coming from special funds. This
includes multiyear funding provided within thematic packages centered
around improving transportation infrastructure and supply chains and
through a few other one-time augmentations. To address the General Fund
shortfall, the 2024 25 budget makes a few modifications to
transportation funding included and planned for in prior budgets. (These
changes build upon fund shifts and delays that were made as part of the
2023 24 budget agreement.) In total, these changes reduce General Fund
spending by $4.4 billion across the budget window (2022 23 through
2024 25). However, some of these savings are only temporary because the
budget agreement plans to provide the funding in a future year. Overall,
the budget package has the net effect of reducing General Fund spending
by $2.3 billion across the multiyear period through 2027 28.
Major reductions include $400 million from the Active Transportation
Program, $200 million for grade separation projects, and $96 million
from support for the Port of Oakland. The spending plan also changes the
timing of when some funding will be provided, such as by delaying
planned funding to a future year and through cash flow
adjustments reverting funds that have already been awarded to projects
with the intent to reappropriate the dollars in a future year when they
are needed to cover planned expenditures. Additionally, the budget
shifts some spending from the General Fund to the Greenhouse Gas
Reduction Fund (GGRF) and the State Highway Account. This includes a
combined total of $1.3 billion from the competitive and formula-based
Transit and Intercity Rail Capital Programs (TIRCP) shifted to
GGRF. After accounting for these modifications, the budget retains
$11.5 billion ($8.2 billion from the General Fund) for transportation
programs across a seven-year period (2021 22 through 2027 28), which is
93 percent of the multiyear amount originally planned. Figure 2 provides
more details on the modifications included in the budget.
Figure 2
Revised Multiyear Transportation Funding Packages
(In Millions)
Program
Department
Original
Multiyear Totals
2023 24 Revised
Multiyear Totals
2024 25
Changes
Revised
Multiyear Totals
Transportation Infrastructure Package
$9,500
$9,500
$675
$8,825
Formula based TIRCP
CalSTA
$4,000
$4,000
D, FS
—
$4,000
Competitive TIRCP
CalSTA
3,650
3,650
CF, FS
—
3,650
Active Transportation Program
Caltrans
1,050
1,050
CF, R
$400
650
Grade separation projects
CalSTA/Caltrans
350
350
CF, FS, R
200
150
Local climate adaptation programs
Caltrans
200
200
—
200
Highways to Boulevards Pilot Program
Caltrans
150
150
CF, FS, R
75
75
Clean California Local Grant Program
Caltrans
100
100
—
100
Supply Chain Package
$1,380
$1,380
$31
$1,349
Port and Freight Infrastructure Program
CalSTA
$1,200
$1,200
CF
—
$1,200
Supply chain workforce campus
CWDB
110
110
CF
—
110
Port operational improvements
GO Biz
30
30
—
30
Increased commercial driver’s license capacity
DMV
40
40
R
$31
9
Other
$1,380
$1,380
$96
$1,284
Zero Emission Transit Capital Program
CalSTA
$1,100 a
$1,100
D
—
$1,100
Port of Oakland improvements
CalSTA
280
280
R
$96
184
Totals
$12,260
$12,260
$802
$11,458
General Fund
$11,160
$10,510
$2,298
$8,212
Greenhouse Gas Reduction Fund
$910
$910
$1,421
$2,331
State Highway Account
—
$650
$75
$725
Public Transportation Account
$190
$190
—
$190
a Created as part of the 2023 24 budget package.
D = Delay; FS = Fund Shift; CF = Cash Flow Adjustment; and R = Reduction.
TIRCP = Transit and Intercity Rail Capital Program; CalSTA = California State Transportation Agency; Caltrans = California Department of Transportation; CWDB = California Workforce Development Board; GO Biz = Governor’s Office of Business and Economic Development; and DMV = Department of Motor Vehicles.
Delays Some Transit Funding. The budget
delays some funding for transit infrastructure and operations. This
includes $1 billion from formula-based TIRCP that had been planned for
2024 25 to instead be provided in 2025 26, as well as a total of
$460 million that had been planned for the Zero-Emission Transit Capital
Program across 2023 24 and 2025 26 to instead be provided in 2027 28.
Both programs can be used by local transit agencies to support either
operations or infrastructure projects, although they have some differing
requirements and restrictions on the types of projects that can be
funded.
Caltrans
The budget provides $15.3 billion to support Caltrans in 2024 25.
This is roughly the same amount as the estimated 2023 24 expenditure
level. A few notable new augmentations include the following:
Establishes Ongoing Funding for Expanded California
Integrated Travel Project. The budget includes
$11.8 million from the Public Transportation Account in 2024 25
(increasing to $26.3 million annually in 2026 27) to expand and provide
ongoing support for the California Integrated Travel Project. This
program funds various activities intended to improve and standardize the
ridership experience across public transit agencies. The program was
first established in 2021 22 using limited-term federal
funding.
Increases Funding for Intercity Passenger Rail
Program. The budget includes $66 million in 2024 25,
$72 million in 2025 26, and $73 million in 2026 27 from the Public
Transportation Account through Caltrans to support Intercity Passenger
Rail Program operations. This will augment existing funding for three
state-supported intercity passenger rail services operated by Amtrak
(Capitol Corridor, San Joaquin, and the Los Angeles-San Diego-San Luis
Obispo Rail [LOSSAN] Corridor). These services historically have relied
heavily on fare revenues to support their operations. However, increased
operating costs, decreased ridership, and the expiration of limited-term
federal funds have resulted in them experiencing structural budget
deficits in recent years.
One-Time General Fund to Support Local Transportation
Projects. The budget includes $20.8 million from the
General Fund through Caltrans to support four local transportation
projects, including: (1) $8 million to repair storm damage to bluffs in
Crescent City, (2) $5 million for the Active Transportation Program to
support bike lanes that connect disadvantaged communities to higher
education facilities and job centers, (3) $4 million to support
operations and maintenance for the Sonoma-Marin Area Rail Transit
District, and (4) $3.8 million for a street safety project in Sonoma
County.
California Highway Patrol
The budget provides $3.2 billion for CHP in 2024 25, which represents
a reduction of $110 million (about 3 percent) relative to 2023 24.
Similar to last year, the budget includes a number of shifts in the
funding approach for CHP capital outlay projects. Specifically, the
budget shifts $13.1 million from the General Fund to lease revenue bonds
for the performance criteria phase of six area office projects including
Antelope, Barstow, Gold Run, Los Banos, Porterville, and Redding. The
administration has not yet identified what fund source it plans to
propose to pay the future debt service on these bonds.
Department of Motor Vehicles
The budget provides $1.5 billion for DMV in 2024 25, which is roughly
equivalent to the estimated 2023 24 expenditure level. This relatively
flat year-to-year comparison masks the expiration of some limited-term
expenditures and carryover balances from prior years, offset by a few
augmentations from the Motor Vehicle Account related to information
technology. This new spending includes: (1) $60.2 million in one-time
funding in 2024 25 for the driver licensing and vehicle registration
phases of the Digital Experiences Platform; (2) $17.3 million ongoing
funding to cover increases in fees the California Department of
Technology charges for services it provides to DMV; (3) $7.4 million in
2024 25, decreasing to $4.9 million on an ongoing basis in future years,
to improve the department s cybersecurity; and (4) $2.4 million in
2024 25 to update the Commercial Driver License Information System to
comply with federal mandates. The budget also includes $4.5 million in
2024 25 (decreasing to $200,000 ongoing in future years) from the
General Fund to continue the development and implementation of the Motor
Voter Program.
High-Speed Rail Authority
The budget provides a total of $1.1 billion for HSRA in 2024 25,
mostly from GGRF. While this is a net reduction from the estimated
2023 24 expenditure level, actual expenditures in 2024 25 could be
notably higher or lower than budgeted. This is because the project has
access to resources such as GGRF funds that remain unspent from prior
years that far exceed the budgeted amount.
Replaces Consultants With State Staff. The
budget includes $14 million (just over $13 million from GGRF and
$279,000 from Proposition 1A bond funds) on an ongoing basis and
authority to hire 67 state staff to replace work currently undertaken by
consultants. The additional state staff are expected to reduce contract
costs, resulting in net savings to the state of $9 million. (HSRA
estimates it currently spends around $22 million for consultants to
undertake this work.)
Budget Trailer Legislation Increases Administrative
Spending Cap. The budget package includes trailer
legislation that raises the share of Proposition 1A bond funds that can
be used for HSRA s administrative expenses (known as the administrative
spending cap) from 2.5 percent to 5 percent. Given the $9 billion in
Proposition 1A bond authority for the high-speed rail project, this
action increases the maximum amount of Proposition 1A funding available
to HSRA for administrative purposes from $225 million to
$450 million.
High-Speed
Rail Authority Office of the Inspector General
Funding and Budget Trailer Legislation Support
Establishment of the Office of the Inspector General. The
2024 25 budget provides a total of $3 million on an ongoing basis from
the Public Transportation Account for the High-Speed Rail Authority
Office of the Inspector General. This is an increase of $2 million from
the estimated 2023 24 level. The funds will support 14 new permanent
staff positions. These new positions, along with the recently appointed
Inspector General, will launch the office, which was created by
Chapter 71 of 2022 (SB 198, Committee on Budget and Fiscal Review). The
budget package also includes trailer legislation to make technical
amendments to Chapter 71 and facilitate the successful startup of the
office.
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