Funding Guide

Citizen's Guide to "Transportation Financese"

AB 1107 1977 state legislation to make permanent a temporary half-cent sales tax imposed in Alameda, Contra Costa and San Francisco counties for BART in 1970. Funds are used for BART, San Francisco Muni and AC Transit capital improvements and operations.

Allocate The process used to release funding to sponsors of a previously approved transportation project.

Appropriate An act by the State Legislature or Congress to provide budgeted funds to programs that have been previously authorized by other legislation. The amount of funding appropriated may be less than what was authorized.

Article XIX Restriction This provision in the California Constitution limits the use of state gasoline tax revenues to projects related to roadway (including bicycle and pedestrian projects) or fixed guideway (rail or trolley coach) improvements.

Authorize An act by Congress that creates the policy and structure of a program, including formulas and guidelines for awarding funds. Authorizing legislation (such as TEA 21) may set an upper limit on program spending or may be open ended. Revenues to be spent under an authorization must be appropriated annually by separate legislation.

Bay Area Partnership Often referred to as simply "The Partnership," this is a coalition of the top staff of various transportation agencies in the region (MTC, public transit operators, county CMAs, city and county public works departments, ports, caltrans, U.S. DOT) as well as environmental protection agencies (the BAAQMD, EPA). The Partnership works by consensus to improve the overall efficiency and operation of the Bay Area's transportation network, including developing strategies for financing transportation improvements.

BATA Bay Area Toll Authority: Entity created by the California Legislature to administer the base $1 toll from the Bay Area's seven state-owned toll bridges, a responsibility previously held by the CTC. MTC began operations as BATA Jan. 1, 1998.

Caltrans California Department of Transportation: The state agency responsible for building, maintaining and operating state highways and certain intercity rail services, among other things.

Capital Funds Funding dedicated to new projects or projects to improve or replace elements of the transportation system, including freeway widenings, rail extensions, transit station improvements, new bicycle and pedestrian lanes, and so forth. (Also see "Operating Funds.")

CMA Congestion Management Agency: A countywide agency responsible for preparing and implementing a county's Congestion Management Program. CMAs came into existence as a result of state legislation and voters' approval of Prop. 111 in 1990. Subsequent legislation made optional the requirement for counties to have a CMA. Most Bay Area counties have them. Those that don't have designated a countywide transportation planning agency in their stead.

CMAQ Congestion Mitigation and Air Quality Improvement Program: A pot of federal money contained in TEA 21 for projects and activities that reduce congestion and improve air quality.

County Minimums A formula in state law that requires a minimum return of STIP revenues to counties based on population and state highway miles.

CTC California Transportation Commission: A state-level version of MTC that sets state spending priorities for highways and transit and allocates funds. Its nine members are appointed by the governor.

Expenditure In transportation terms, this is any allowable expense associated with a project or program.

Farebox The revenues collected by transit operators from passenger fares.

FHWA Federal Highway Administration: See U.S. DOT.

Flexible Funding Unlike funding that flows only to highways or only to transit by a rigid formula, this is money that can be invested on a range of transportation projects. Examples of flexible funding categories include the STP, CMAQ and RIP programs.

FTA Federal Transit Administration: See U.S. DOT.

FY Fiscal Year: Annual schedule for keeping financial records and for budgeting transportation funds. California's fiscal year runs from July 1 through June 30, while the federal fiscal year runs from Oct. 1 through Sept. 30.

IIP Interregional Improvement Program: A state funding category created in SB 45 for intercity rail, interregional road or rail expansion projects outside urban areas, or projects of statewide significance. IIP moneys become part of a funding program known as the ITIP (see below).

Intermodal A mode is a particular form of transportation, such as automobile, transit, ship, bicycle and walking. Intermodal refers specifically to the connections between modes.

ISTEA Intermodal Surface Transportation Efficiency Act: Federal transportation legislation that expired in 1997. ISTEA emphasized diversity and balance of modes, as well as the preservation of existing systems before construction of new facilities. Much of ISTEA's program structure is carried forward in new federal legislation (see TEA 21).

ITIP Interregional Transportation Improvement Program: A state funding program for IIP funds. Caltrans nominates and the CTC approves a listing of interregional highway and rail projects for 25 percent of the funds to be programmed in the STIP (the other 75 percent are RIP funds).

MPO Metropolitan Planning Organization: A federally required planning body responsible for the transportation planning and project selection in its region; the governor designates an MPO in every urbanized area with a population of over 50,000 people. MTC is the Bay Area's MPO.

MTC Metropolitan Transportation Commission: The transportation planning, financing and coordinating agency for the nine counties that touch San Francisco Bay.

MTC SAFE Service Authority for Freeways and Expressways: Entity that oversees the operation of some 3,500 motorist-aid call boxes and 60 roving tow trucks in the Bay Area. Funded by a $1 vehicle registration fee.

Multimodal Refers to the availability of multiple transportation options, especially within a system or corridor. A multimodal approach to transportation planning focuses on the most efficient way of getting people or goods from place to place, be it by truck, train, bicycle, automobile, airplane, bus, boat, foot or even a computer modem.

NHS National Highway System: This approximately 160,000-mile network consists of the 42,500 miles of the Interstate system, plus other key roads and arterials throughout the United States. Designated by Congress in 1995 pursuant to a requirement of the Intermodal Surface Transportation Efficiency Act, the NHS is designed to provide an interconnected system of principal routes to serve major travel destinations and population centers. The NHS is also a funding category in TEA 21.

North/South Split A requirement in state law governing how STIP funds are divided within California, with 60 percent of funds going to the South and 40 percent of the funds going to the North.

Obligate The way project sponsors spend money, typically by putting their project under contract for construction. Often funding programs come with restrictions that require a project sponsor to obligate funds in a timely manner or lose the funds.

Operating Funds Moneys used to fund general, day-to-day costs of running transportation systems. For transit, costs include fuel, salaries and replacement parts; for roads, operating costs involve maintaining pavement, filling potholes, paying workers" salaries, and so forth. (Also see "Capital Funds.')

Program 1. verb: to assign funds to a project that has been approved by MTC, the state or other agency. 2. noun: a system of funding for implementing transportation projects or policies, such as through the State Transportation Improvement Program (see STIP).

Return to Source A requirement with some funding programs (such as TDA) that the money flow back to the county where it originated from tax revenues.

RIP Regional Improvement Program: State funding category created by SB 45 that can be used for a variety of projects, including for freeways, carpool lanes, rail lines, transit stations and road rehabilitation. RIP funds become part of a funding program known as the RTIP (see below).

RM1 Regional Measure One: 1988 ballot measure approved by Bay Area voters to raise tolls on all state-owned toll bridges (that is, every toll bridge in the region except the Golden Gate) to $1 in order to fund a number of bridge improvements and congestion-relief projects in congested bridge corridors.

RTIP Regional Transportation Improvement Program: State funding program that includes RIP funds, which make up 75 percent of the funds available for programming in the STIP. RTPAs prepare the RTIP consistent with the RTP to reflect priorities identified by county CMAs, project sponsors and members of the public. The CTC must approve the entire RTIP list or reject it in its entirety. Once the CTC approves an RTIP, it is combined with those from other regions to comprise 75 percent of the funds in the STIP.

RTP Regional Transportation Plan: A blueprint to guide the region's transportation development for a 20-year period. Updated every two years, it is based on projections of growth and travel demand coupled with financial projections. Required by state and federal law.

RTPA Regional Transportation Planning Agency: A state-designated agency responsible for preparing the Regional Transportation Plan and the Regional Transportation Improvement Program, administering state funds, and other tasks. MTC is the Bay Area's RTPA.

SB 45 Senate Bill 45: 1997 state legislation that streamlined the STIP and transferred from the state to metropolitan regions more authority in deciding how to invest transportation funds.

Self-Help Counties A term used to describe counties that have taken the initiative to supplement available state and federal funds by enacting local voter-approved funding mechanisms -- such as half-cent sales taxes -- to pay for transportation improvements. In the Bay Area, five counties have passed such measures: Alameda, Contra Costa, San Francisco, San Mateo and Santa Clara.

SHOPP State Highway Operations and Protection Program: State funding category used by Caltrans to maintain and operate state highways.

STA State Transit Assistance: State funding program for mass transit operations and capital projects.

State-Owned Toll Bridges Those toll bridges owned and operated by the state of California. There are nine such spans in the state, seven of which are in the Bay Area: the Benicia-Martinez Bridge, the Carquinez Bridge, the Dumbarton Bridge, the Pittsburg-Antioch Bridge, the Richmond-San Rafael Bridge, San-Francisco-Oakland Bay Bridge and the San Mateo-Hayward Bridge. Contrast these to the Golden Gate Bridge, which is locally owned and operated by the Golden Gate Bridge, Highway and Transportation District.

STIP State Transportation Improvement Program: What the CTC ends up with after combining various RTIPs from around the state and adding Caltrans' proposed ITIP. Covering a four-year span and updated every two years (except for the 1998 STIP, which covers six years), the STIP determines when and if transportation projects will be funded by the state.

STP Surface Transportation Program: One of the key funding programs in TEA 21. STP monies are "flexible," meaning they can be spent on mass transit, pedestrian and bicycle facilities as well as on roads and highways.

TDA Transportation Development Act: State law enacted in 1971. TDA funds are generated from a tax of one-quarter of one percent on all retail sales in each county; used for transit, special transit for disabled persons, and bicycle and pedestrian purposes, they are collected by the state and allocated (by MTC in the Bay Area) to fund transit operations and programs. In non-urban areas, TDA funds may be used for streets and roads under certain conditions (see Unmet Transit Needs Findings).

TEA Transportation Enhancement Activities: A TEA-21 funding category. Ten percent of STP monies must be set aside for projects that enhance the compatibility of transportation facilities with their surroundings. Examples of TEA projects include bicycle and pedestrian paths, restoration of rail depots or other historic transportation facilities, acquisition of scenic or open space lands next to travel corridors, and murals or other public art projects. (Also see Transit Enhancements.)

TEA-21 Transportation Equity Act for the 21st Century: Passed by Congress in May 1998, this federal transportation legislation retains and expands many of the programs created in 1991 under ISTEA. Reauthorizes federal surface transportation programs for six years (1998-2003), and significantly increases overall funding for transportation.

TFCA Transportation Fund for Clean Air: Created under 1991 legislation that authorized the BAAQMD to impose a $4 annual surcharge on motor vehicle registrations. Sixty percent of the funds are allocated by the BAAQMD, and 40 percent by county-level CMAs or designated agencies, for projects that contribute to improved air quality in the Bay Area.

TIP Transportation Improvement Program: This is the primary spending plan for federal funding expected to flow to the region from all sources for transportation projects of all types. MTC prepares the TIP every two years with the assistance of local governments, transit operators and Caltrans. By law, the TIP must cover at least a three-year period.

TLC Transportation for Livable Communities: New funding program created by MTC in 1998 to fund small-scale, community- and transit-oriented projects.

Transit Enhancements A new requirement in TEA 21's transit funding program designed to enhance the travel experience for public transit riders. Funded by a one percent set aside of federal Section 5307 formula funds. Eligible projects include bus shelters, increased access by persons with disabilities, public art, rehabilitation and renovation of historic transit facilities and vehicles, landscaping, and bicycle and pedestrian access.

Unmet Transit Needs Findings Certain smaller counties may use TDA funds for local streets and roads only if the RTPA in their jurisdiction makes a finding that public transit service and operations in the county have no unmet needs. RTPAs must hold public hearings prior to making such a determination. In the Bay Area, these hearings are held annually in Napa, Solano and Sonoma counties.

U.S. DOT United States Department of Transportation: The federal agency responsible for highways, mass transit, aviation and ports and headed by the secretary of transportation. Includes the FHWA and the FTA, among others.