California is investing more in its transportation system than ever before under the Governor’s leadership. In November California voters approved the Strategic Growth Plan, which included a $2.85 billion bond to promote affordable housing options throughout and California and a $19.9 billion transportation bond to relieve traffic congestion on California's overcrowded roads, expand the state's mass transit and rail systems and improve air quality near California's ports.

Major Changes in the May Revision

• $11.5 billion over three years to begin implementing Proposition 1B-funded projects and programs.
• $6.2 billion authorized for 2007-08 for transportation capital outlay programs, including $129 million for contract positions to complete bond-related work.
• An additional $200 million in 2006-07 for Home-to-School Transportation from the Public Transportation Account (PTA). The Governor’s January budget proposed using record PTA funding to support important initiatives, including Home-to-School Transportation ($627 million), Developmental Services-Regional Center Transportation ($144 million), and Transportation General Obligation Bond debt service ($340 million).
• $187 million in 2007-08 for the purchase of rail cars and locomotives, and new funding proposals for security at ports and harbors and air quality improvement.
• An increase in state transit assistance grants from $185 million to $206 million in 2007-08.

Areas Largely Unchanged from the Governor’s 2007 January Budget

Overall Transportation Spending

• The Governor's Budget proposes total expenditures of $17.8 billion in 2007-08 for roads, highways, mass transit and intercity rail, vehicle licensing and registration, and highway law enforcement.
• This is an increase of $1.845 billion from the 2006 Budget Act and an increase of $1.7 billion from the revised 2006-07 expenditure estimates.
• Total transportation spending (state and federal) is up over 43% since 2004-05.

Proposition 1B Bonds

• To ensure accountability and results for these historic funds, the Governor is requiring a performance-based approach to all bond allocations.

Proposition 42

• Consistent with Proposition 1A from the Strategic Growth Plan, the Governor's Budget proposes to fully fund the Proposition 42 transfer and the Proposition 1A loan repayment for fiscal 2007-08.
• The transfer distributes $684 million to the TCRP, $699 million to the State Transportation Improvement Program (STIP), and $175 million to the Public Transportation Account.

Transit

• $548 million increase in 2007-08 for transit projects funded from the Traffic Congestion Relief Fund.
• $600 million in transit bond allocations and $69 million from the Public Transportation Account for capital investment in transit projects in 2007-08.

State Highway Operation and Protection Program (SHOPP)

• $1.8 billion total funding, including using a combination of the tribal gaming revenues and $205 million in federal funds received for past emergencies and reallocated from other states for additional California pavement projects. The last maintenance pavement survey, which was conducted in 2004, indicated nearly 14,000 lane miles (or thirty percent) of the state highway system were "distressed", or needing major repair.