On May 22, 1998, Congress passed, (House: 297-86-50 and Senate: 88-5),
a six-year reauthorization of the nation's surface transportation laws
called TEA-21 (Transportation Equity Act for the 21st Century). Both
Senators Boxer and Feinstein and 35 House California delegation members
voted in support of the conference agreement. Ten Californians voted
against the measure, and eight delegation members did not vote (Roll
Call Vote 192). President Clinton signed TEA-21 into law on June
9th.
Funding. TEA-21 authorizes over $217 billion in total
transportation spending over the fiscal years 1998-2003: almost $170 billion
for highways; just under $42 billion for transit; over $1.7 billion for
highway safety programs; upwards of $2.9 billion for transportation research;
about $644 million for the Motor Safety Carrier program; and approximately
$545 for rail and miscellaneous safety programs. TEA-21 contains
"guaranteed spending" provisions which means, under new budget rules, at
least $198 billion will be spent on highways and mass transit transportation
over the next six years. The guaranteed spending provisions are intended
to ensure that all federal gas tax revenues are used for transportation
infrastructure.
Overall, California is expected to contribute about $20 billion in federal transportation taxes over the next six years. According to Caltrans, California's net return will be close to $20 billion, therefore our contributions will most likely match, if not exceed, our receipts.
Highways
California Total. Under ISTEA (1992-1997) Californians
contributed more money in gas taxes to the federal government than it received
back in highway funding. About 86% of California's federal gas taxes
were returned to the state. TEA-21 promises to return at least 90.5%
of a state's contributions in federal gas taxes under the highway formula.
Caltrans estimates California will receive about $15.24 billion in total,
or about $2.54 billion for highways annually under TEA-21. The increased
funding will result in an approximate $870 million increase in annual federal
transportation funding than under ISTEA.
Highway formula funding. According to the Federal Highways
Administration (FHWA) and Caltrans' calculations, California is scheduled
to receive about 9.19% or $14.3 billion of the total almost $156 billion
distributed over six years under the highway funding formula. The
state will get a almost $2.4 billion, on average annually. California
will receive an approximate 45% increase in dollar funding over the previous
1992-97 ISTEA law. Listed below are the nine programs that compose
the highway funding (formula plus a small discretionary program, see below)
and California's annual funding levels as calculated by FHWA(6/10/98):
| Highway Formula | Total (98-03)Funding | CA Annual Aver. $ | % of Total $ | ||||
| Interstate Maint. /National Highway System | $52.38 B | $786 M | 0.0900 | ||||
| Congestion Mitigation/Air Quality (CMAQ) | $8.12 B | $277.4 M | 0.2049 | ||||
| Surface Transportation | $33.33 B | $535.4 M | 0.0964 | ||||
| Metropolitan Planning | $1 B | $28.7 M | 0.1725 | ||||
| Minimum Guarantee | $33.57 B | $348.7 M | 0.0623 | ||||
| High Priority Projects | $9.324 B | $145.8 M | 0.0938 | ||||
| Appalachian Devt. Highways System | $2.250 B | n/a | n/a | ||||
| Recreational Trails | $270 M | $3.1 M | 0.0689 | ||||
| Bridge | $20.43 B | $260.8 M | 0.0766 | ||||
| TOTAL HIGHWAY FORMULA | $155.7 B | $2.385980 B | 0.0919 |
Discretionary Program funding. California's exact share of the highway programs is not distributed by formula, and therefore is difficult to determine ahead of time. Most of the funding allocation for these programs is determined by the Secretary of Transportation. Caltrans estimates California will receive about 8% of the $10 billion available, or about $800 million dollars. Among other discretionary programs, one California may benefit from is a $700 million National Corridor and Border Infrastructure program.
High Priority Projects. For a list of California highway projects included in TEA21, please see the attached list of highway projects and transit projects.
Other provisions. A California ISTEA Task Force identified priority, the State Infrastructure Bank (SIB) program will be continued, but participation is limited to California and three other states. The bill also includes the Transportation Infrastructure Finance and Innovation Act, or TIFIA, a program that provides federal credit financing for large, high-cost transportation projects. Projects like the Alameda Corridor have already used similar, federally-backed credit financing to attract private capital investment in high-cost transportation projects, reducing the need for large amounts of public dollars. Lake Tahoe is also designated as a Metropolitan Planning Organization (MPO), the Devil's Slide project in San Mateo county made eligible for funding from the Emergency Relief fund, and the I-5, I-905, Alameda Corridor East, and Southwest Passage are designated as high priority corridors under TEA-21.
Transit
California Total. California is expected to receive about
14.2% of the guaranteed funding for transit ($35 B), which Caltrans estimates
will be about $4.97 B for 1998-2003, but this does not include money appropriated
for discretionary programs and from the general fund. Better numbers
and details should be available after the measure is sign into law.
Specific Projects for fixed guide way new starts, extensions, and buses.
Please see attached list.
The more than $18 billion in funding for the Capital Investments Grants
and Loans (the program that funds the listed projects) will be divided
40% to modernize existing systems, 40% for new systems and extensions to
existing systems, and 20% for buses and bus related equipment.
Los Angeles MTA. Requires the Los Angeles MTA to consider the neighborhood impact and effect on minority and low-income populations, and capacity to serve transit dependent riders in the East side or Mid City areas when considering alternatives to building subway lines.
Other provisions. TEA21 includes programs that authorized and provide funding to incorporate Magnetic Levitation, High Speed Rail, and Light Density Rail Line Pilot Projects.
Motor Carrier Safety
Grants for Border Infrastructure. Grants to state and
local agencies for improving border commercial motor vehicle safety and
compliance, increase public awareness, or employ new technologies .
Transportation Research
University transportation research. The University of
Southern California and California State University at Long Beach together
were selected to receive a grant (with required local match) to establish
and operate a transportation research center and related research activities.
Funding for the transportation research center will be $600,000 for fiscal
years 1998 and 1999, and must compete with other selected universities
for $1.5 million in additional funding.
Seismic Research. The University of California at San Diego will receive a $1 million annual grant (FY99-FY02) to update its earthquake simulation facilities.
Southwest Border. TEA-21 directs the Department of Transportation to evaluate and identify infrastructure needs along the Southwest Border.
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