1. Local Pots of Gold Local Pots of Gold Maintaining Fiscal Constraint for Local Funds in the TIP Srikalyani Srinivasan Metropolitan Transportation Commission 2013 FTIP Workshop January 17, 2012

2. Where Revenue Comes From Source: California Department of Transportation

3. Local Funding Local Measure Sales Taxes: 19 counties have approved sales tax measures for transportation Four transit agencies have approved permanent local measures Expenditures of sales tax revenues are normally specified by a voter approved plan Transit Fares: On average, transit fares account for about 25% of transit operating revenue Local General and Other Funds: Most common expenditure is for street and road operations and maintenance Includes property taxes, developer fees, assessment levies, bond revenue, etc. STIP: 40% of Proposition 42 and excess PTA funds regional and interregional capital improvement programs (RTIP/ITIP) that are approved by the CTC. RTIP – (75% of STIP program) 5-Year programs containing county priority projects. Each county’s share is based 25% on state highway mileage and 75% on population ITIP – (25% of STIP program) Interregional projects that are nominated by Caltrans All RTIP and 40% of ITIP funds are subject to the North/South (60%/40%) split. A portion (about 9%) of ITIP funds must be set aside to fund Intercity Rail Truck Weight Fees: Collected on commercial vehicles based on weight State Sales Tax: Portions of the 7.25% sales tax is earmarked for transportation: Transportation Development Act (TDA) – ¼ percent of state sales tax used for transit operations PTA/STA – 4.75% of the diesel sales tax is used for public transit capital and operations funding Proposition 42 – Revenues from 5% state gasoline sales tax Spillover Proposition 1B: 2006 bond act provides $19.9 billion for transportation over a 10-year period

4. Local Revenues in the TIP Local funds are estimated during the development of the Long Range Plan or RTP. For the RTP - Local revenue estimates for local streets and roads are based on survey data from local agencies. The revenues are estimated and escalated over the RTP period. Operator-specific revenue projections including transit fares, Bridge tolls, property taxes (AC Transit and BART), AC Transit parcel taxes, BART seismic bond proceeds, and San Francisco Municipal Transportation Agency general fund and parking revenue, have been provided by the respective operators. The fund estimate is another invaluable source to update revenues. State law requires the MTC to annually complete a Fund Estimate by March 1 st. Provides estimates and apportionments of Transportation Development Act (TDA) funds

5. FY 2012-13 MTC Fund Estimate Overview SourceDescriptionFY 2010-11FY 2011-12 TDA ¼ cent sales tax in each county $276 million$269 million AB 1107 MTC administered portion (25%) of the ½ cent sales tax in Alameda, Contra Costa, and San Francisco Counties $60 million$58 million STA Sales tax on diesel fuel $147 million$150 million Bridge Tolls AB 664, MTC 2% tolls, 5% State General Fund $16 million$20 million Total$499 million$498 million

6. TDA Overview ¼-cent general Sales Tax for transportation purposes Mainly used for Transit Operations and Capital Generated funds are distributed at a county level into counties’ LTF accounts, and then distributed to operators based on population factors TDA estimates included in the annual Fund Estimate are provided by County Auditors, and actual generation values are provided by the State Board of Equalization (BOE)

7. STA Overview Generated through a sales tax on Diesel Fuel Mainly used for Transit Operations – Transit Capital is eligible State law requires that 50% of the generated funds be distributed based on Transit Operator Revenues and 50% be distributed based on Population Revenue-based funds are distributed directly to Transit Operators, and Population-based funds are distributed based on MTC Policy The State provides an estimate of annual STA funds

8. Programming in the TIP All projects in the TIP are checked for consistency with the RTP (scope and cost of the project in the TIP is within scope and cost of the RTP listing) Both the RTP and TIP have to be financially constrained “Other Local” funds are used extensively as matching funds within the TIP Period –Justification for “Other Local” funds programmed in the TIP in excess of $2 million – serves as a check for the funds –Justification has to be consistent with board approved plans and programs and has to be on the jurisdictions letterhead. To show total project cost, RTP-LRP (RTP Long range planning) funds are used for uncommitted funds beyond the TIP period.

9. Resolution of Local Support Before projects are programmed into the TIP, as part of the project selection process for most MTC managed programs, sponsors have to provide a Resolution of Local Support when applying for funds. Individual programs like STP, CMAQ, FTA 5307 and 5309 programs and RTIP programs all require resolutions of Local support. This ensures that match requirements are met and that the local funds / support of the project exist.