California State Rail Plan 2005-06 to 2015-16

Chapter II – Capital Program
OUTLOOK
The intercity rail program has received significant capital funding, as is discussed
above. However, as it also mentioned above, adequate State funding is not
projected to be available to fund the unconstrained capital program presented in
Figure 2A. The only ongoing and guaranteed capital funding source is the nine
percent of the ITIP that was provided by SB 45. Other major intercity rail capital
funding sources, such as Proposition 108 and 116 bond funds and TCRP funds did
not provide ongoing funding. And funding from sources such as the GF was on
a project specific basis. There have been a number of proposals on the Federal
level for an ongoing intercity rail capital grant program, but to date, no program
has been enacted.
The lack of a stable and adequate ongoing funding source for the intercity rail
capital program is a major concern. It is difficult to develop long-range service
plans that are dependant upon new equipment and capital projects when funding
levels are uncertain. Also, it is difficult to determine what are the most costeffective
capital projects in the short-term, when the magnitude of the long-term
capital program is uncertain. The Department will continue to explore
mechanisms for a stable intercity rail capital funding source.
Stable funding for equipment acquisition is of particular concern. This is because
Article XIX of the State Constitution does not allow rail equipment to be funded
from SHA funds that are generated by excise taxes on fuel. Equipment has in the
past been funded from special sources, such as one-time budget appropriations
from sources such as the GF. Currently, virtually all new frequencies or
extensions of the existing three intercity rail routes and any new routes will require
new equipment. As there is a very limited supply of existing equipment that could
be available for lease, new intercity rail service is dependant on the State
purchasing new equipment.
Additionally, existing equipment requires funding for maintenance and overhaul.
To date, PTA funds have been used for this purpose. However, as existing
equipment ages and new equipment is acquired, overhaul needs will increase,
and additional funds will be needed.
Funding for intercity rail operations is considerably more stable than capital
funding. The PTA, which is designed under law as a trust fund for transportation
planning and mass transportation purposes, has been the exclusive source for
intercity rail operations. Under Proposition 42, enacted in March 2002,
the transfer of certain gasoline sales tax revenue to the PTA will significantly
increase PTA funding available for expansion of intercity rail operations.
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