1. California’s Infrastructure Crisis

2. Statewide Transportation System Needs Assessment 2011 2 “California’s transportation system is in jeopardy. Underfunding – decade after decade – has led to the decay of one of the State’s greatest assets.” - California Transportation Commission.

3. Neglected Improvements Are Staggering 3 California’s unfunded needs are through 2021. - California Transportation Commission. Statewide Transportation Needs Assessment 2011

4. Caltrans Maintenance Needs are Growing 4 Shortfall Amount Spent on Highway Repairs - Legislative Analyst’s Office, 2011

5. California Infrastructure Report Card 5 Pavement of California Roadways Require Rehabilitation or Pavement Maintenance Require Complete Replacement Require Major Maintenance or Preventative Work Bridges - California Transportation Commission. Statewide Transportation Needs Assessment 2011

6. California Infrastructure Report Card 6 of the Nation’s 10 Worst Urban Area Pavement Conditions - Texas Transportation Institute of the Nation’s 20 Most Congested Transportation Corridors of California’s Major Urban Highways are Congested

7. Poor Road Conditions… 7 More than Drunk Driving, Speeding or Failing to use Seat Belts - TRIP Cost Californians Annually Contribute to More Than of US Highway Fatalities $586 per Motorist ✗ ✗ ✗ ✗

8. Population will Grow from 38MM to 44MM by 2020 8 - Governor’s 2006 Strategic Growth Plan VMT is growing faster than lane miles. Truck freight is expected to increase by 2035 - Statewide Transportation Needs Assessment 2011

9. Jobs & Unemployment 9 - 15,000 Direct and Indirect Transportation Jobs - 15,000 Induced Jobs Each $1B Invested in Transportation Creates Approximately 30,000 Jobs - Federal Highway Administration The Construction Industry is Reporting 20-40% Unemployment

10. Funding Will Collapse in 2013 10 Source: Transportation Weekly. Vol. 11, Issue 34

11. Our Current Challenges Decline of gas tax revenues and purchasing power Diversion of transportation revenues Lack of state and federal solutions 11

12. Revenues have not kept pace with VMT growth 12

13. Projected Balance in Highway Trust Fund FY2012 - FY2022 13

14. Impact of fuel efficiency and Inflation of goods and services 14 Source: AASHTO Loss in Purchasing Power By 2015

15. 15 Effect of Improving Fuel Efficiency When State Fuel Taxes and VMT Are Held Constant - D’Artagnan Consulting LLP

16. 2013: Critical Year to Address the State’s Transportation Funding Challenges Prop 1B coming to an end Gas tax revenue continues to decline Needs are critical State’s economy and quality of life on the line Need to take action NOW 16

17. Funding Solutions / Alternative Delivery Possibilities  Public-Private Partnerships  Vehicle License Fee  Fuel User Fee  Cap & Trade  Infrastructure Bond  VMT Tax/Fee  Voter Threshold  Innovative Procurement Mechanisms 17

18. The Plan Capitalize on our Unique Opportunity High Unemployment Prop 1B Sunsetting New Transportation Secretary 18

19. The Plan Energize our Effort Educate the Public Educate Legislators Influence Funding Choices 19

20. The Goal Replace Prop 1B Funding ($3B/yr.) Fully Fund Maintenance Programs ($7B/yr.) 20

21. The Best Opportunities Cap & Trade Self-Help Voter Threshold (55%) Vehicle License Fee Diesel User Fee 21

22. The Team  Will Kempton, Executive Director  Mark Watts, Advocate  Industry Partners