California State Rail Plan 2007-08 to 2017-18

2007-08 – 2017-18 California State Rail Planbond funds and TCRP funds do not provide ongoing funding. As well, fundingfrom sources such as the GF was on a project specific basis. There have been anumber of proposals on the Federal level for an ongoing intercity rail capital grantprogram, but, to date, no program has been enacted.The lack of a stable and adequate ongoing funding source for the intercity railcapital program is a major concern. It is difficult to develop long-range serviceplans that are dependent upon new equipment and capital projects when fundinglevels are uncertain. Also, it is difficult to determine the most cost-effectivecapital projects in the short-term, when the magnitude of the long-term capitalprogram is uncertain. The Department will continue to explore mechanisms for astable intercity rail capital funding source.While Proposition 1B is anticipated to provide $150 million for intercity railequipment, this amount may not be adequate to fund all equipment necessary forthe new frequencies, expansions, and new routes planned through 2017-18.Stable funding for equipment acquisition remains a concern. This is becauseArticle XIX of the State Constitution does not allow rail equipment to be fundedfrom SHA funds that are generated by excise taxes on fuel. Equipment in the pasthas been funded primarily from Propositions 108 and 116 and one-time budgetappropriations from sources such as the General Fund. As there is a very limitedsupply of existing equipment that could be available for lease, new intercity railservice is dependent 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 existingequipment ages and new equipment is acquired, overhaul needs will increase, andadditional funds will be needed.Funding for intercity rail operations is considerably more stable than capitalfunding. The PTA, which is designed under law as a trust fund for transportationplanning and mass transportation purposes, has been the exclusive source forintercity rail operations. Under Proposition 42, enacted in March 2002, it isanticipated that the transfer of certain gasoline sales tax revenue to the PTA couldincrease PTA funding available for expansion of intercity rail operations.ROLLING STOCK PROGRAMROLLING STOCK FLEETThe State has an intercity rail rolling stock program unparalleled by any other statein the nation. The State owns its own fleet of 88 cars and 17 locomotives.The State has spent over $300 million on the design and acquisition of cars andlocomotives since the early 1990’s. Proposition 116, passed by the voters in 1990,provided the initial funds for the design and purchase of equipment. This fleet hasallowed significant frequency increases on all three routes.30