Title: The 2020-21 Budget: Transportation
Headings: Transportation
The 2020-21 Budget
Transportation
Executive Summary
Overview of Governor’s Transportation Budget
A Few Proposals to Implement New or Recently Enacted Policy Changes
Certain Proposals Appear Warranted, but May Benefit From Legislative Oversight
Overview of Governor’s Transportation Budget
Transportation Budget Summary
Cross Cutting Issues
Update on S B 1 Revenue
Background
SB 1 Increased Several Taxes and Fees
New Provisions Go Into Effect in the Budget Year
Transportation Revenue Increases From S B 1
Motor Vehicle Account (MVA) Fund Condition
Background
Motor Vehicle Account Fund Condition
Governor’s Proposals
MVA Projected to Become Insolvent in 2024‑25
Issues for Legislative Consideration
Caltrans
Caltrans Budget Summary
Litter Abatement
Background
Governor’s Proposal
Assessment
Recommendation
Pedestrian and Bicyclist Safety Investigations
Background
Governor’s Proposal
Assessment
Recommendation
Wildfire Litigation
Background
Governor’s Proposal
Assessment
Recommendations
Transportation System Network Replacement
Background
Governor’s Proposal
Assessment
Recommendation
Department of Motor Vehicles
Department of Motor Vehicles Capital Outlay Projects
Motor Voter Workload
Background
Governor’s Proposal
Assessment
Recommendation
San Francisco Field Office Replacement Project
Governor’s Proposal
Assessment
Recommendation
California Highway Patrol
California Highway Patrol Capital Outlay Projects
E‑Cigarette Tax Enforcement
Background
Governor’s Proposal
Assessment
Issues for Legislative Consideration
High‑Speed Rail Authority
Administrative Cap
Background
Governor’s Proposal
Assessment
Recommendation
Summary of Recommendations

Content: 5 p ercent of bond proceeds, but allows the Legislature to raise it to up to 5 p ercent by statute.) Under its revised approach, HSRA will have an inconsistent method for how it categorizes state and contract staff who perform similar functions. HSRA estimates its revised approach to calculating the administrative cap will result in HSRA reaching the cap roughly three years later than previously anticipated (2023‑ 24 r ather than 2020‑21). This is important because it delays a natural opportunity for legislative oversight. We recommend that the Legislature direct HSRA to apply the same approach to calculating the administrative cap for state staff and contractors. Certain Proposals Appear Warranted, but May Benefit From Legislative Oversight
Motor Vehicle Account (MVA) Fund Condition. Over the last several years, the MVA has periodically faced operational shortfalls—meaning planned expenditures exceed combined revenues and transfers. The proposed budget includes a few proposals intended to benefit the MVA in recognition of future operational shortfalls, including ( 1) s hifting some costs to other funds and ( 2) u sing lease revenue bonds—rather than the typical “pay‑as‑you‑go” approach—to fund the construction phase of CHP and DMV facility projects. While the Governor’s budget proposals would help alleviate the operational shortfalls in the MVA over the next few years, they would not fully address the account’s structural imbalance. Absent any corrections, the administration projects that the MVA would have an operational shortfall of $ 228 m illion in 2024‑25, resulting in a negative fund balance of roughly $ 265 m illion.