2660 Department of Transportation
Major Program Changes
  • Early Repayment of General Fund Loans: The Budget proposes $351 million in General Fund loan repayments. Of the total to be repaid, $337 million will be used to provide near-term maintenance improvements to the existing state highway system and local streets and roads. The state highway funds will be used for pavement, mobility, bridge projects, and drainage system rehabilitation projects that will improve safety and operational efficiency.

  • Clean Transportation: The Budget includes $50 million of Cap and Trade funds for rail modernization for the following activities: modernization and system integration (including high speed rail); public transit with connectivity to rail; expanded transit and ridership programs; and other transit infrastructure.

  • Proposition 1B Capital Funding: The Budget includes $963 million in bond funds. The funding includes $793 million to support local transit operators, $160 million for intercity rail, and $10 million for local bridge retrofitting projects. Additionally, budget bill language has been included to account for cost savings that the Department of Transportation has generated in its administrative management of the bond program. It is estimated $113 million will be available for state highway projects from the identified cost savings.

  • Capital Outlay Support Zero-Based Budget Review: The Budget proposes several improvements to the Capital Outlay Support program. The recommendations are focused on budgeting policies and practices, the use of consultants, accountability and transparency, and improvements to program management.

  • Aeronautics Program Zero-Based Budget Review: The Budget proposes to transfer $4 million from the underutilized Local Airport Loan Account to the local grant program that provides state-matching funds for federal project grants. This will fund 55 additional local airport improvement projects across the state.