Resolving Regional Challenges SOUTHERN CALIFORNIA ASSOCIATION GOVERNMENTS of Resolving Regional Challenges

Resolving Regional Challenges BEYOND CRISIS RESPONSE The New Generation of Transportation Financing in California Mark Pisano Executive Director, SCAG University of California, Irvine March 7, 2003

Resolving Regional Challenges 2001 Regional Transportation Plan Baseline Revenues (existing sources: local, state, fed) $100 Bil. 69% Private Funding $20 Bil. 14% Additional Public Funding $24 Bil. 17% (1997 Dollars) $144 Billion in Revenue Needs

Resolving Regional Challenges 2001 RTP Funding Strategy Est. RevenuesImplementation Billions $ 2 Continue local sales tax measures where necessary $3 Riverside Ballot ‘02 San Bernardino Ballot ‘04 3 Adjust motor vehicle fuel excise tax rate/user fees (statewide or regional) $15 1 Continue using state gasoline sales tax revenues for transportation purposes $6 Proposition 42 4 Implementation of revenue backed projects (access private capital) $20 $44

Resolving Regional Challenges The State Budget Crisis Potential Impacts to the SCAG Region are Significant

Resolving Regional Challenges Potential Short-Term Loss $8 BILLION If the Region falls out of conformity with the federal law pertaining to air quality. This would occur as soon as the region is required to process a Transportation Improvement Program modification that affects project capacity.

Resolving Regional Challenges Potential Long-Term Loss $9 BILLION Assuming: Continued suspension of TCRP funding through FY 2008 Cyclical realization of Proposition 42 revenues beyond FY 2009 No significant increase in federal funds

Resolving Regional Challenges Transportation Financing Options 1 Pursue passage of legislative measures that further empower local/regional transportation agencies to raise revenues for planning and delivering transportation projects. Authorization may include the imposition of regional user-fees to support the completion of eligible transportation projects.

Resolving Regional Challenges Transportation Financing Options 2 Reduce voter threshold requirement for locally imposed taxes.

Resolving Regional Challenges Transportation Financing Options 3 Increase the state gas tax in order to maintain a rate of growth in transportation revenues that reflects increases in project costs over time, or alternatively, index the state gas tax.

Resolving Regional Challenges Transportation Financing Options 4 Facilitate access to private capital (public/private partnership approach to financing transportation infrastructure).

Resolving Regional Challenges SOUTHERN CALIFORNIA ASSOCIATION GOVERNMENTS of Thank You Mark Pisano Executive Director