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CTC Report Underscores Successful Management of Proposition 1B Transportation Funding Program

Effective management of $12 billion in state funds generates $37 billion in transportation capital investments

Date: September 4, 2015
Contact: Will Kempton
Phone: (916) 654-4245

SACRAMENTO – A report released today by the California Transportation Commission (CTC) indicates that its management of more than $12 billion from the Proposition 1B program over the past nine years has resulted in additional federal, local and private investment of $25 billion to improve transportation infrastructure around the state.

The CTC report also emphasizes the one-time nature of the Proposition 1B funding, and that continuing investment in the state's transportation infrastructure is needed to address a long and growing list of projects to take care of the state's existing system. Caltrans estimates that there is a $57 billion backlog in needed maintenance for state highways. There are similar backlogs for streets and roads, rail, and transit systems. The report states that the CTC has so far allocated more than $11.4 billion of the funding under its purview and estimates that transportation projects funded with Proposition 1B proceeds have created thousands of jobs statewide since 2006.

Proposition 1B's one time funding was passed in November 2006 by 61.4 percent of state voters. It authorized the state to issue $19.925 billion in general obligation bonds for projects to relieve congestion, facilitate goods movement, improve air quality and increase the safety of the state's transportation system.

The CTC was assigned responsibility for programming and allocating $12.025 billion through 10 programs addressing a variety of transportation infrastructure needs. Most of the programs were competitive, ensuring that funds were directed to projects providing the greatest benefits.

"The projects made possible through Proposition 1B funding reduced traffic congestion, improved air quality, made travel safer and helped grow California's economy."

Lucy Dunn, Chair, California Transportation Commission

The report also states that while Proposition 1B limited the cost of administration to 3 percent of bond proceeds, Caltrans estimates that it will spend less than 2 percent for the programs under the CTC’s purview. The low administrative costs combined with lower-than-expected project costs have saved nearly $2 billion, which the CTC used to fund additional projects throughout the state.

"Our statewide transportation system is the foundation for a healthy California economy. Proposition 1B program results demonstrate that management and accountability are the keys to delivering taxpayers a strong return on their investment for future generations."

Rob Lapsley, President, California Business Roundtable

Among the key results of Proposition 1B funding:

  • State highway and local road improvements projected to save California drivers more than 530,000 hours of daily travel time, a full eight-hour work day for 66,250 workers.
  • 87 projects improving freight movement in the Los Angeles/Inland Empire, San Diego and Northern California regions.
  • More than 112 miles of increased highway capacity and other improvements to State Route 99 in the San Joaquin Valley and Sacramento Valley.
  • 17 passenger rail projects to upgrade equipment and improve on-time performance.
  • Earthquake safety improvements on 318 local bridges, with another 65 bridges being designed and slated for construction.

"The Commission strategically invested Proposition 1B funds in the highest priority projects, including much needed State Route 99 improvements, that were efficiently delivered by state and local agencies. Those projects have improved the economy, environment and quality of life in Fresno and throughout the Central Valley. As funding solutions to address additional needs are discussed, this program should be considered a model of how to use resources effectively."

Ashley Swearengin, Mayor of Fresno

The Proposition 1B report and additional information is available on the CTC Reports Page.