Abstract
Available funding for transportation in California is expected to decline significantly over the next 15 years if the current transportation finance system remains unchanged. This report presents an analysis of a range of alternative sources of revenue, as well as different finance options. The research is based upon reviews of existing literature, interviews with key stakeholders, analyses of revenue trends, fuel tax rates and trends, statewide ballot measures, and two statewide phone surveys. The facility-based sources considered were toll roads and lanes, truck-only toll lanes, privatized rest areas, and public-private partnerships (PPPs). The taxes and fees evaluated were increasing fuel taxes by a fixed amount, indexing fuel taxes to inflation, mileage-based fees, vehicle registration fees, vehicle license fees, weight-mile taxes for trucks, a statewide sales tax, and state general fund revenues allocated either for current expenditures or to pay off general obligation bonds. Each of the revenue and finance options was evaluated according to five criteria: (1) revenue generation; (2) ease of implementation; (3) transportation system performance; (4) equity; and (5) political feasibility.