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California State Rail Plan 2005-06 to 2015-16

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Chapter XII – Intercity <strong>Rail</strong> Funding<br />

CLEAN AIR AND TRANSPORTATION IMPROVEMENT ACT<br />

OF 1990 (PROPOSITION 1<strong>16</strong>)<br />

Proposition 1<strong>16</strong> provided a $1.99 billion one-time source of funding for rail and<br />

transit projects. Proposition 1<strong>16</strong> contained about $382 million for intercity rail<br />

capital projects, $1.37 billion for urban and commuter rail projects, and<br />

$235 million for other transit and transit related projects. Most of these bond<br />

funds have been allocated.<br />

GENERAL FUND<br />

The General Fund can be used for rail projects if there is a specific appropriation<br />

in the budget. Since 1975-76, only the 1999-00 and 2000-01 <strong>State</strong> Budgets have<br />

provided GF money for intercity rail capital projects. The 1999-00 Budget<br />

included $17.5 million for new intercity rail rolling s<strong>to</strong>ck and the 2000-01 Budget<br />

also provided $30 million for this purpose.<br />

LOCAL FUNDS<br />

Although intercity rail passenger services are funded primarily by the <strong>State</strong>,<br />

a substantial amount of local funds have been invested, mainly on the<br />

Pacific Surfliner Route <strong>to</strong> fund commuter rail development. These funds serve <strong>to</strong><br />

enhance commuter rail service improving tracks, signals and stations also used by<br />

intercity trains. Also, intercity rail stations are often owned by cities and funded<br />

with local revenue in addition <strong>to</strong> STIP funding. The Department will work with<br />

local and regional entities that may wish <strong>to</strong> fund higher levels of service than <strong>State</strong><br />

resources are able <strong>to</strong> provide.<br />

FEDERAL FUNDS<br />

Federal transportation funds from various programs are used for intercity rail<br />

projects. In particular, funding has been provided for station projects from the<br />

FTA Section 5307 and 5309 capital programs. However, Federal flexible<br />

transportation funds, such as are provided through the Surface Transportation<br />

Program, are generally not available for intercity rail projects.<br />

In the <strong>2005</strong> Congressional session, Amtrak reform proposals have been introduced<br />

that include Federal funding for intercity rail passenger capital programs.<br />

SB 15<strong>16</strong> (Passenger <strong>Rail</strong> Investment and Improvements Act of <strong>2005</strong>), a bi-partisan<br />

Congressional bill, proposes an 80 percent Federal/20 percent state capital match<br />

program for state intercity passenger rail investment. $4.9 billion in GFs are<br />

proposed for the program over the six years of the bill (FFY 20<strong>06</strong>-2011). The bill<br />

also authorizes tax credit bonds for capital projects, not <strong>to</strong> exceed $1.3 billion<br />

through <strong>2015</strong>. Also, House Resolution 1713, the Administration backed bill,<br />

<strong>16</strong>1

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