The California State Transportation Agency emerged from the former Business, Transportation and Housing Agency on July 1, 2013, as part of a broad reorganization of state government’s executive branch. It is responsibile for issues of mobility, safety and, to some extent, air quality. One of its responsibilities, since the reorganization, is integrating the development of high-speed rail with the state’s transportation infrastructure. Because transportation adds to pollution, the agency is involved in the state’s goals of reducing greenhouse gases and enhancing environmental sustainability. The agency continues to group the state’s major transportation-related departments under one umbrella, including Caltrans, the Department of Motor Vehicles and the California Highway Patrol. It added the independent High-Speed Rail Authority and California Transportation Commission as part of the reorganization.
The earliest incarnation of the Business, Transportation and Housing Agency surfaced in 1895 with creation of the Bureau of Highways. Two years later it was superceded by the Department of Highways, which was placed under the newly-created State Department of Engineering in 1907. The Engineering department was renamed the Department of Public Works in 1921 and it maintained oversight of the renamed Division of Highways.
In 1961, California established the Highway Transportation Agency that consisted of the Department of Public Works (and its Division of Highways), the Department of Motor Vehicles and the California Highway Patrol. Four years later its name was shortened to the Transportation Agency.
The agency added Business to its title in 1969 when it expanded its portfolio to include departments and boards of Aeronautics, Corporations, Housing and Community Development, Insurance, Real Estate, Savings and Loan, and State Banking. All the transportation functions were reorganized under its Department of Transportation (Caltrans) in 1973, and in 1980 the agency added Housing to its masthead to better reflect its larger mandate.
On July 1, 2013, the Business, Transportation and Housing Agency shed its business and housing responsibilities, added a few departments and re-emerged as the State Transportation Agency. Chief among the new additions was the formerly independent High Speed Rail Authority.
Caltrans History (California Department of Transportation)
The California State Transportation Agency includes the following:
Board of Pilot Commissioners (BOPC)
The Board of Pilot Commissioners for the Bays of San Francisco, San Pablo and Suisun licenses and regulates up to 60 pilots who operate under the San Francisco Bar Pilots
Association and one inland pilot. The bar pilots and river pilots move more than 9,000 vessels a year within the operational territory of the pilots. The piloting grounds also include Monterey Bay. The pilots provide service to vessels of all types, from 100-foot tugs to 1,000-foot supertankers, as well as to 1,200-foot container and bulk cargo ships, military vessels and cruise ships. It is the only state pilot commission in California.
A pilot is the person in charge of navigating incoming and outgoing ships in bays, inlets, rivers, harbors and other ports, taking control of the vessel from the captain when entering and leaving local waters to avoid accidents.
California Highway Patrol (CHP)
The California Highway Patrol enforces the state's traffic safety laws statewide, primarily on freeways and roadways in unincorporated areas of the state. It is one of the largest law enforcement agencies in the United States and polices around 100,000 miles of roads. In addition to protecting the state infrastructure such as the power grid and water supply, the CHP provides intelligence gathering, analysis and dissemination with other law enforcement agencies. The majority of the state’s 911 calls are channeled through the CHP and is the statewide coordinator of the AMBER Alert system.
Department of Transportation (Caltrans)
The Department of Transportation is responsible for planning, coordinating and implementing the development and operation of the state's transportation system, including 50,000 lane-miles of highways and freeways. The department has nearly 21,000 employees with an annual budget of about $13 billion, six times larger than any other department in the agency. Headquartered in Sacramento, the department has 12 district offices throughout the state and is the lead entity on the implementation of Proposition 1B, the $19.9 billion Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006, as well as for the $2.57 billion in federal stimulus funds California has received from the American Recovery and Reinvestment Act of 2009.
Department of Motor Vehicles (DMV)
The Department of Motor Vehicles registers cars in California and licenses its drivers; more than 23.8 million drivers as of January 1, 2011, and almost 32 million registered vehicles. Its bureaucracy is famously maddening and its long lines are legendary. It administers the Vehicle Insurance Program; issues driver’s licenses and ID cards; provides vehicle registrations and titles; promotes driver safety; and regulates businesses and occupations related to the manufacture, transport, sale and disposal of vehicles. In addition to its considerable clerical duties, the department also operates 168 field offices, 15 driver safety offices, 14 investigative offices and four telephone service centers. The department has approximately 9,000 employees with an annual budget of about $960 million.
New Motor Vehicle Board (NMVB)
The New Motor Vehicle Board is a program within the Department of Motor Vehicles. It is a quasi-judicial administrative forum that resolves disputes between franchised dealers and manufacturers/distributors of new motor vehicles (including motorcycles, and recreational vehicles).There is also a Consumer Mediation Services Program which attempts through informal mediation to resolve disputes between consumers and new motor vehicle dealers and/or manufacturers or distributors. The NMVB is funded by the new motor vehicle industry. It was created in its present form in 1973 and since that time has resolved more than 2,700 disputes, and processed approximately 26,500 consumer complaints.
California Transportation Commission (CTC)
The 13-member commission, nine of whom are appointed by the governor, is responsible for providing programming and funding of several billion dollars annually for transportation projects in partnership with regional transportation agencies and the California Department of Transportation (Caltrans). The commission also advises the secretary of the Transportation Agency and the state Legislature on key transportation policy matters.
High-Speed Rail Authority (CHSRA)
The rail authority is responsible for planning and constructing a high-speed system of electrically powered trains to transport commuters and help reduce traffic and air congestion. The hotly-contested plan is to build 800 miles of track between the San Francisco Bay Area and Southern California, connecting the regions by 2020 with trains capable of reaching 220 miles-per-hour.
Office of Traffic Safety (OTS)
The California Office of Traffic was created to award grant dollars to local and state government departments for development of traffic safety programs. It is nearly 100% funded by the federal government. OTS also conducts public awareness campaigns targeting specific traffic safety issues. The office provides grants to develop police traffic services, alcohol and other drug prevention programs, occupant protection programs, pedestrian and bicycle safety, emergency medical services, roadway safety and traffic records. Its programs assist impaired driving and speed enforcement, encourage seat belt usage, and bicycle and pedestrian safety.
The 2013-14 Transportation Agency budget includes total funding of $21.1 billion ($205.9 million in General Fund, $87.2 billion from state special funds, $5.1 billion from bond funds and $7.6 billion in other funds).
The giant Department of Transportation (Caltrans) employs nearly half the agency’s 39,070 workers and receives nearly 61% of its $21.1 billion budget. The High-Speed Rail Authority spends $3.2 billion, followed by the California Highway Patrol ($1.9 billion) and the Department of Motor Vehicles ($988 million).
The budget includes a reduction of $36.3 million and 184 Caltrans positions for engineering, design and construction oversight, reflecting an anticipated decrease of activity because of the expiration of certain funding sources, such as Proposition 1B and the federal American Recovery and Reinvestment Act. The proposed level of staffing will establish a 90/10 percent split of state staff to architectural and engineering consultant contracts, according to The Associated General Contractors of America.
The budget taps money for transportation that was raised through the state’s new Cap and Trade Program—a move opposed by environmentalists—by borrowing up to $500 million from the Greenhouse Gas Reduction fund. The fund has received around $260 million in proceeds from the auction or sale of credits.
Special fund transportation revenue will fund $67 million in debt service. The State Highway Account generates a portion of this revenue from rental income and the sale of surplus property.
Governor Signs Balanced Buget (The Associated General Contractors of America)
A Ten-Year Perspective: California Infrastructure Spending (Legislative Analyst’s Office)
Caltrans Spending Questioned
Two studies by California state watchdogs in 2011 were critical of spending by the state Department of Transportation (Caltrans).
Caltrans, by far the largest department in the Business, Transportation and Housing Agency, was cited in a report by the state auditor for incurring support program cost overruns of $305 million for 476 projects since 2007. Support programs include engineering, design, environmental studies, right-of-way acquisition and construction management of state highway projects.
The report, which covered fiscal year 2007-08 to 2009-2010, concluded: “Despite a stated goal to reduce overruns in its project budgets, Caltrans has done little analysis to determine the frequency or magnitude of support cost budget overruns.”
Caltrans was allocated $1.8 billion for the support program in 2010-11.
The independent Legislative Analyst’s Office reviewed the department’s budget request for 2010-2011 and found its support programs were “over-staffed” and lacking strong management. “We think major actions are needed to correct the issues we identify,” it said.
Specifically, it called for a staff reduction of 1,500 “to align with actual workload” and said Caltrans needed to provide more information to justify its annual budget request.
2010-11 Budget: Transportation (Legislative Analyst’s Office) (pdf)
California Department of Transportation (State Auditor) (pdf)
CHP Ticketing More
It could just be coincidence, but just about the time California saw a massive increase in its budget deficit, the California Highway Patrol started handing out a lot more tickets.
CHP reported in March 2011 that it had issued 200,000 more tickets in 2009 than it had two years earlier. The number of citations grew by 8%. It’s estimated that the extra tickets netted the state an additional $50 million over two years.
Tickets for cell phone use while driving, which did not become a violation until 2008, was cited as one of the reasons for the increase.
CHP Traffic Tickets Increase (by Jack Change, Sacramento Bee)
Pilot Commissioners Board Steers Through Rocky Shoals
The California Board of Pilot Commissioners for the Bays of San Francisco, San Pablo and Suisun was created in the first session of the state Legislature in 1850. It’s been part of the Business, Transportation and Housing Agency (BTH) since 2009.
And it almost disappeared in August 2011.
Democratic state Assemblywoman Alyson Huber introduced a bill that would have disbanded the board in 2013 unless it could justify its existence during a legislative “sunset” process. A lobbyist for the San Francisco Bar Pilots Association testified at hearings that his membership was not necessarily opposed to the review, but were reported to be seeking assurances that the board’s licensing functions would move directly to BTH.
Pilots are all experienced sailors—many of them former captains of big ships—who guide around 9,000 ships into the bays each year. The job is fraught with peril. In 2007, Captain John J. Cota was piloting the 900-foot Cosco Busan when it clipped the San Francisco Bay Bridge, spilling 53,000 gallons of fuel oil and netting Cota a 10-month sentence in federal prison for negligence.
The pilots are extremely well-paid with average compensation around $400,000 a year. In March 2011, the Bar Pilots Association submitted a request to raise pilots’ pay to $600,000 a year by 2015. The board, through which the pilots are paid, is financed through piloting fees charged to shippers, making it totally self-supporting. Shippers, not surprisingly, favored Huber’s legislation.
The board governs the activities of the 60 or so bar pilots, who are not state employees. The idea of making the pilots public employees has been discussed for years. Bar pilots in the Port of Los Angeles are city employees and make around $227,000.
The sunset provisions were eventually stricken from the Huber bill.
Huber Wants to Send Bar Pilots Commission Into Sunset (by Malcolm Maclachlan, Capitol Weekly)
California Board of Pilot Commissioners (Wikipedia)
High-Speed Rail
BTH houses Caltrans, which is responsible for highway, bridge and rail transportation planning, construction and maintenance. Yet, it lacks authority over possibly the largest proposed transportation project in the state’s history: high-speed rail. The price of linking Northern and Southern California with 800 miles of high-speed rail is estimated at $43 billion, although most everyone agrees that price tag will go up. It is managed by the California High-Speed Rail Authority, an independent agency put together specifically to manage this project.
Democratic state Sen. Alan Lowenthal, a longtime supporter of high-speed rail, introduced legislation in February 2011 that would overhaul the Authority by firing its board of directors and placing it directly under the authority of the Business, Transportation and Housing Agency. The new board members would need to be approved by the Legislature, would face stricter ethics standards and have to possess “specific expertise” in areas like finance, the environment and construction.
But the debate over who will run the state’s high-speed rail project is dwarfed by the much larger question: Should California be putting its resources and energy into developing such a system?
High-Speed Rail Is at a Critical Juncture (Office of the Legislative Analyst)
SB 517 Bill Tracker (Official California Legislation Information)
High-Speed Rail Overseas (Wikipedia)
Build the System
Where would this country be if President Dwight Eisenhower backed away from the enormous undertaking in the ‘50s of building the interstate highway system?
Defenders of high-speed rail in California argue that the economy won’t always be in the doldrums and that it is projects like this that will put people to work and stimulate growth. The availability of major federal funding, recently passed state bond issues and pressing environmental concerns have accelerated the timetable for developing high-speed rail and introduced not unforeseeable issues. They argue that a project of this magnitude can’t anticipate every funding source, develop every procedure and map out a precise timetable in a combustible political climate. Some of the work will have to be done on the fly.
If the High-Speed Rail Authority is not up to the task, as some critics argue, it can be revamped or the project can be shifted to Caltrans. That department has an annual $13 billion budget and certainly more than a passing familiarity with large transportation projects.
If the controversial first leg of the rail system in Northern California—chosen because it can be built quickly at the cheapest price) is not acceptable—there is plenty of time to choose a different route.
The rest of the world is moving forward into the 21st century utilizing already-developed modern technology. China and France each have over a thousand miles of rail, Japan has been at it since 1964 and even Spain has a viable system. This is not only doable, it is a priority, supporters say.
High-speed rail enthusiasts also make an environmental argument that we can’t afford to keep building roads that never seem to get ahead of the ever-growing crush of vehicular traffic. Mass transit within and between urban areas is environmentally sound, economically sensible and the smart thing to do. So it’s not surprising to find that some of the most vocal critics of high-speed rail are the Reason Foundation and the Heritage Foundation. Both are heavily financed by Koch Industries, an oil, gas, ranching and financial services conglomerate controlled by billionaire brothers David and Charles Koch. David Koch is director of the Reason Foundation.
These critics produce cost estimates that seem ridiculously high. Some people think “ridiculous” is the operative word. Knowledgeable people have estimated that the first leg from Merced to Bakersfield would cost $30 per kilometer. A comparable phase in France is running at $24 per kilometer and one in Belgian at $29 per kilometer.
Could the money be spent now on more immediate needs? Almost certainly. But supporters point out that that approach may be penny wise and pound foolish because California’s population will continue to grow. Some estimate that a successful rail system could allow the state, over time, to forego spending $100 billion on new freeways and airport expansion.
Gravy Train: High-Speed Rail’s Economic Benefits (International Political Economy Zone)
Californians Advocating Responsible Rail Design
Californians for High-Speed Rail
High-Speed Rail Authority (State Auditor, 2010) (pdf)
Is California’s High-Speed Rail Really a Boondoggle? (by Brad Plumer, Washington Post)
California HSR: Where Now? (by Alon Levy, Pedestrian Observations)
Don’t Build the System
The subtitle of a 2010 state auditor’s report might say it all: “It Risks Delays or an Incomplete System Because of Inadequate Planning, Weak Oversight, and Lax Contract Management.”
Critics of high-speed rail in California say it’s wildly too expensive—especially during a devastating economic downturn marked by massive state budget deficits. The need is questionable, the technology is still under development, the plan for implementation is terrible, the politics is disgusting, the state entity in charge is inexperienced and not up to the task, and the project is a huge diversion from much more pressing problems.
In short, it promises to be the boondoggle to end all boondoggles.
In 2008, the Reason Foundation Howard Jarvis Taxpayers Association and the Citizens Against Government Waste published a report projected a much higher price tag, much lower ridership, unattainable safety goals and slower speeds. It also said often-touted environmental benefits were non-existent.
The independent Legislative Analyst’s Office was critical of the High-Speed Rail Authority in a 2009 report that found its business plan to be “very general” and lacking details found in typical business plans. But its May 2011 report went further. In addition to outlining a number of problems facing the Authority, it pronounced the Authority at a “critical juncture” and echoed Senator Lowenthal’s call that it be taken over by BTH. “A new and separate division of Caltrans dedicated to the high–speed rail project would be better positioned, if equipped with the appropriate project delivery tools, to manage the development of the system in this phase.”
But despite widespread fear that the Authority isn’t up to the task, Governor Jerry Brown has resisted efforts to get rid of it. This will be the leadership that takes us stumbling and bumbling into an expensive dead-end.
Will Massive Debt Derail China’s High-Speed Rail Plans? (by Norihiko Shirouzu, Wall Street Journal)
Comparing U.S. Trains to Foreign Lines (All Things Considered-NPR)
Riled Over California’s High-Speed Rail (by Jason S. Mandell, LA Weekly)
A Call to Slow Down High-Speed Rail (by Shereen Meraji, All Things Considered-NPR)
Critics Question Cost, Ridership (by Colin Sullivan, Greenwire/New York Times)
Ridership Forecasts Unclear (by Dan Weikel and Rich Connell, Los Angeles Times)
Review of “Bay Area/California High-Speed Rail Ridership and Revenue Forecasting Study” (by David Brownstone, Mark Hansen and Samer Madanat, Institute of Transportation-University of California Berkeley) (pdf)
Former Secretaries of Predecessor Business, Transportation and Housing Agency
Traci Stevens, 2011-12
A resident of Roseville, Traci A. Stevens was appointed acting secretary by Governor Jerry Brown in January 2011. She first began government work in 1984 as policy assistant to state Senate Minority Leader Jim Nielsen. When Nielsen resigned his post as minority leader in 1987 following the loss of a special election the GOP hoped would help catapult it into the majority, he was replaced by Ken Maddy, who hired Stevens as his senior budget consultant. Stevens worked for Maddy until 1991, while studying public administration, government and public policy at the University of San Francisco from 1986-1989.
In 1991, Stevens accepted her first gubernatorial appointment as deputy director for legislative and regulatory review at the Department of Housing and Community Development. She moved to the Department of Consumer Affairs three years later to be deputy director for legislation overseeing a staff of approximately 20 analysts. In 1996, she became deputy secretary for legislation in the State and Consumer Services Agency and two years later did the same job for the California Energy Commission. She left government in 2000 and for five years was regional vice president for Traffic Research and Analysis, Inc. While out of government she was also a Realtor for RE/MAX Gold Real Estate and Lyon Real Estate.
She returned to state service in 2009 as deputy secretary for legislation for the Business Transportation and Housing Agency. She was made undersecretary for the agency in January 2011 and was elevated to acting secretary of the department shortly thereafter when Secretary Dale E. Bonner returned to the private sector.
Profile (LinkedIn)
Governor Schwarzenegger Announces Appointment (Imperial Valley News)
Ex Officio, Voting Member Designee (Employment Training Panel)
Dale E. Bonner, 2007–2011. The Los Angeles lawyer earned a bachelor of arts degree in political science from the University of Southern California in 1987 and a Juris Doctorate degree from Georgetown University Law Center in 1990. He was admitted to the California State Bar in 1991. Bonner entered public service in 1992 as deputy legal affairs secretary in the Office of Governor Pete Wilson. Four years later, he became deputy secretary and general counsel for the Business, Transportation and Housing Agency. In 1998, Bonner was appointed commissioner of the California Department of Corporations and stayed until 1999 before moving to the private sector. From 1999 to 2002, he was counsel to the law firm Hogan & Hartson before becoming a partner in the law firm Epstein Becker & Green, where he represented public and privately-held companies in regulatory and transactional matters until 2007. He sat on the Los Angeles City Ethics Commission from 2000-2005. Bonner, a Republican, returned to public service in 2007 when he was appointed secretary of the Business, Transportation and Housing Agency by Governor Arnold Schwarzenegger.
Epstein Becker Partner Appointed Secretary of State Agency (Metropolitan-News Enterprise)
Sunne Wright McPeak, 2003–2007
Maria Contreras-Sweet, 1999–2003. The first Latina to hold a cabinet-level position in California government.
Dean R. Dunphy, 1994–1998
Thomas S. Sayles, 1993
Carl D. Covitz, 1991–1992. Covitz resigned from the Wilson administration amid controversy over his use of CHP officers as personal drivers and his office’s move into a new Sacramento high-rise during a time of economic upheaval and budget cuts. He was a former Housing and Urban Development Department official in the Reagan administration. Although a Republican, Covitz had ties to both major political parties. He contributed to the campaigns of Democratic Attorney General John K. Van de Kamp and former Lieutenant Governor Mike Curb, a conservative Republican. He gave at least $2,000 to Wilson during his campaign for governor.
John K. Geoghegan, 1985–1990
Kirk West, 1983–1985
Lynn Schenk, 1977-1983
Richard T. Silberman, 1977. The millionaire former owner of Jack in the Box and longtime Democratic fund-raiser was convicted of money laundering in 1990 and sentenced to 46 months in federal prison. The flamboyant financier had been charged with seven felony counts in an alleged scheme to launder $300,000 in cash that an undercover FBI agent had portrayed as Colombian drug profits. Silberman was Governor Jerry Brown’s chief fund-raiser during his run for president in 1976 and later served as Brown’s chief of staff among the multiple roles he played in the administration.
Donald E. Burns, 1975–1976
Frank J. Walton, 1971–1973
James M. Hall, 1970–1971
Gordon Luce, 1967–1970
Former Commissioners (Los Angeles City Ethics Commission)
- Table of Contents
- Overview
- History
- What it Does
- Where Does the Money Go
- Controversies
- Debate
- Suggested Reforms
- Former Directors
- Comments
- Leave a comment
California State Transportation Agency
The California State Transportation Agency emerged from the former Business, Transportation and Housing Agency on July 1, 2013, as part of a broad reorganization of state government’s executive branch. It is responsibile for issues of mobility, safety and, to some extent, air quality. One of its responsibilities, since the reorganization, is integrating the development of high-speed rail with the state’s transportation infrastructure. Because transportation adds to pollution, the agency is involved in the state’s goals of reducing greenhouse gases and enhancing environmental sustainability. The agency continues to group the state’s major transportation-related departments under one umbrella, including Caltrans, the Department of Motor Vehicles and the California Highway Patrol. It added the independent High-Speed Rail Authority and California Transportation Commission as part of the reorganization.
The earliest incarnation of the Business, Transportation and Housing Agency surfaced in 1895 with creation of the Bureau of Highways. Two years later it was superceded by the Department of Highways, which was placed under the newly-created State Department of Engineering in 1907. The Engineering department was renamed the Department of Public Works in 1921 and it maintained oversight of the renamed Division of Highways.
In 1961, California established the Highway Transportation Agency that consisted of the Department of Public Works (and its Division of Highways), the Department of Motor Vehicles and the California Highway Patrol. Four years later its name was shortened to the Transportation Agency.
The agency added Business to its title in 1969 when it expanded its portfolio to include departments and boards of Aeronautics, Corporations, Housing and Community Development, Insurance, Real Estate, Savings and Loan, and State Banking. All the transportation functions were reorganized under its Department of Transportation (Caltrans) in 1973, and in 1980 the agency added Housing to its masthead to better reflect its larger mandate.
On July 1, 2013, the Business, Transportation and Housing Agency shed its business and housing responsibilities, added a few departments and re-emerged as the State Transportation Agency. Chief among the new additions was the formerly independent High Speed Rail Authority.
Caltrans History (California Department of Transportation)
The California State Transportation Agency includes the following:
Board of Pilot Commissioners (BOPC)
The Board of Pilot Commissioners for the Bays of San Francisco, San Pablo and Suisun licenses and regulates up to 60 pilots who operate under the San Francisco Bar Pilots
Association and one inland pilot. The bar pilots and river pilots move more than 9,000 vessels a year within the operational territory of the pilots. The piloting grounds also include Monterey Bay. The pilots provide service to vessels of all types, from 100-foot tugs to 1,000-foot supertankers, as well as to 1,200-foot container and bulk cargo ships, military vessels and cruise ships. It is the only state pilot commission in California.
A pilot is the person in charge of navigating incoming and outgoing ships in bays, inlets, rivers, harbors and other ports, taking control of the vessel from the captain when entering and leaving local waters to avoid accidents.
California Highway Patrol (CHP)
The California Highway Patrol enforces the state's traffic safety laws statewide, primarily on freeways and roadways in unincorporated areas of the state. It is one of the largest law enforcement agencies in the United States and polices around 100,000 miles of roads. In addition to protecting the state infrastructure such as the power grid and water supply, the CHP provides intelligence gathering, analysis and dissemination with other law enforcement agencies. The majority of the state’s 911 calls are channeled through the CHP and is the statewide coordinator of the AMBER Alert system.
Department of Transportation (Caltrans)
The Department of Transportation is responsible for planning, coordinating and implementing the development and operation of the state's transportation system, including 50,000 lane-miles of highways and freeways. The department has nearly 21,000 employees with an annual budget of about $13 billion, six times larger than any other department in the agency. Headquartered in Sacramento, the department has 12 district offices throughout the state and is the lead entity on the implementation of Proposition 1B, the $19.9 billion Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006, as well as for the $2.57 billion in federal stimulus funds California has received from the American Recovery and Reinvestment Act of 2009.
Department of Motor Vehicles (DMV)
The Department of Motor Vehicles registers cars in California and licenses its drivers; more than 23.8 million drivers as of January 1, 2011, and almost 32 million registered vehicles. Its bureaucracy is famously maddening and its long lines are legendary. It administers the Vehicle Insurance Program; issues driver’s licenses and ID cards; provides vehicle registrations and titles; promotes driver safety; and regulates businesses and occupations related to the manufacture, transport, sale and disposal of vehicles. In addition to its considerable clerical duties, the department also operates 168 field offices, 15 driver safety offices, 14 investigative offices and four telephone service centers. The department has approximately 9,000 employees with an annual budget of about $960 million.
New Motor Vehicle Board (NMVB)
The New Motor Vehicle Board is a program within the Department of Motor Vehicles. It is a quasi-judicial administrative forum that resolves disputes between franchised dealers and manufacturers/distributors of new motor vehicles (including motorcycles, and recreational vehicles).There is also a Consumer Mediation Services Program which attempts through informal mediation to resolve disputes between consumers and new motor vehicle dealers and/or manufacturers or distributors. The NMVB is funded by the new motor vehicle industry. It was created in its present form in 1973 and since that time has resolved more than 2,700 disputes, and processed approximately 26,500 consumer complaints.
California Transportation Commission (CTC)
The 13-member commission, nine of whom are appointed by the governor, is responsible for providing programming and funding of several billion dollars annually for transportation projects in partnership with regional transportation agencies and the California Department of Transportation (Caltrans). The commission also advises the secretary of the Transportation Agency and the state Legislature on key transportation policy matters.
High-Speed Rail Authority (CHSRA)
The rail authority is responsible for planning and constructing a high-speed system of electrically powered trains to transport commuters and help reduce traffic and air congestion. The hotly-contested plan is to build 800 miles of track between the San Francisco Bay Area and Southern California, connecting the regions by 2020 with trains capable of reaching 220 miles-per-hour.
Office of Traffic Safety (OTS)
The California Office of Traffic was created to award grant dollars to local and state government departments for development of traffic safety programs. It is nearly 100% funded by the federal government. OTS also conducts public awareness campaigns targeting specific traffic safety issues. The office provides grants to develop police traffic services, alcohol and other drug prevention programs, occupant protection programs, pedestrian and bicycle safety, emergency medical services, roadway safety and traffic records. Its programs assist impaired driving and speed enforcement, encourage seat belt usage, and bicycle and pedestrian safety.
The 2013-14 Transportation Agency budget includes total funding of $21.1 billion ($205.9 million in General Fund, $87.2 billion from state special funds, $5.1 billion from bond funds and $7.6 billion in other funds).
The giant Department of Transportation (Caltrans) employs nearly half the agency’s 39,070 workers and receives nearly 61% of its $21.1 billion budget. The High-Speed Rail Authority spends $3.2 billion, followed by the California Highway Patrol ($1.9 billion) and the Department of Motor Vehicles ($988 million).
The budget includes a reduction of $36.3 million and 184 Caltrans positions for engineering, design and construction oversight, reflecting an anticipated decrease of activity because of the expiration of certain funding sources, such as Proposition 1B and the federal American Recovery and Reinvestment Act. The proposed level of staffing will establish a 90/10 percent split of state staff to architectural and engineering consultant contracts, according to The Associated General Contractors of America.
The budget taps money for transportation that was raised through the state’s new Cap and Trade Program—a move opposed by environmentalists—by borrowing up to $500 million from the Greenhouse Gas Reduction fund. The fund has received around $260 million in proceeds from the auction or sale of credits.
Special fund transportation revenue will fund $67 million in debt service. The State Highway Account generates a portion of this revenue from rental income and the sale of surplus property.
Governor Signs Balanced Buget (The Associated General Contractors of America)
A Ten-Year Perspective: California Infrastructure Spending (Legislative Analyst’s Office)
Caltrans Spending Questioned
Two studies by California state watchdogs in 2011 were critical of spending by the state Department of Transportation (Caltrans).
Caltrans, by far the largest department in the Business, Transportation and Housing Agency, was cited in a report by the state auditor for incurring support program cost overruns of $305 million for 476 projects since 2007. Support programs include engineering, design, environmental studies, right-of-way acquisition and construction management of state highway projects.
The report, which covered fiscal year 2007-08 to 2009-2010, concluded: “Despite a stated goal to reduce overruns in its project budgets, Caltrans has done little analysis to determine the frequency or magnitude of support cost budget overruns.”
Caltrans was allocated $1.8 billion for the support program in 2010-11.
The independent Legislative Analyst’s Office reviewed the department’s budget request for 2010-2011 and found its support programs were “over-staffed” and lacking strong management. “We think major actions are needed to correct the issues we identify,” it said.
Specifically, it called for a staff reduction of 1,500 “to align with actual workload” and said Caltrans needed to provide more information to justify its annual budget request.
2010-11 Budget: Transportation (Legislative Analyst’s Office) (pdf)
California Department of Transportation (State Auditor) (pdf)
CHP Ticketing More
It could just be coincidence, but just about the time California saw a massive increase in its budget deficit, the California Highway Patrol started handing out a lot more tickets.
CHP reported in March 2011 that it had issued 200,000 more tickets in 2009 than it had two years earlier. The number of citations grew by 8%. It’s estimated that the extra tickets netted the state an additional $50 million over two years.
Tickets for cell phone use while driving, which did not become a violation until 2008, was cited as one of the reasons for the increase.
CHP Traffic Tickets Increase (by Jack Change, Sacramento Bee)
Pilot Commissioners Board Steers Through Rocky Shoals
The California Board of Pilot Commissioners for the Bays of San Francisco, San Pablo and Suisun was created in the first session of the state Legislature in 1850. It’s been part of the Business, Transportation and Housing Agency (BTH) since 2009.
And it almost disappeared in August 2011.
Democratic state Assemblywoman Alyson Huber introduced a bill that would have disbanded the board in 2013 unless it could justify its existence during a legislative “sunset” process. A lobbyist for the San Francisco Bar Pilots Association testified at hearings that his membership was not necessarily opposed to the review, but were reported to be seeking assurances that the board’s licensing functions would move directly to BTH.
Pilots are all experienced sailors—many of them former captains of big ships—who guide around 9,000 ships into the bays each year. The job is fraught with peril. In 2007, Captain John J. Cota was piloting the 900-foot Cosco Busan when it clipped the San Francisco Bay Bridge, spilling 53,000 gallons of fuel oil and netting Cota a 10-month sentence in federal prison for negligence.
The pilots are extremely well-paid with average compensation around $400,000 a year. In March 2011, the Bar Pilots Association submitted a request to raise pilots’ pay to $600,000 a year by 2015. The board, through which the pilots are paid, is financed through piloting fees charged to shippers, making it totally self-supporting. Shippers, not surprisingly, favored Huber’s legislation.
The board governs the activities of the 60 or so bar pilots, who are not state employees. The idea of making the pilots public employees has been discussed for years. Bar pilots in the Port of Los Angeles are city employees and make around $227,000.
The sunset provisions were eventually stricken from the Huber bill.
Huber Wants to Send Bar Pilots Commission Into Sunset (by Malcolm Maclachlan, Capitol Weekly)
California Board of Pilot Commissioners (Wikipedia)
High-Speed Rail
BTH houses Caltrans, which is responsible for highway, bridge and rail transportation planning, construction and maintenance. Yet, it lacks authority over possibly the largest proposed transportation project in the state’s history: high-speed rail. The price of linking Northern and Southern California with 800 miles of high-speed rail is estimated at $43 billion, although most everyone agrees that price tag will go up. It is managed by the California High-Speed Rail Authority, an independent agency put together specifically to manage this project.
Democratic state Sen. Alan Lowenthal, a longtime supporter of high-speed rail, introduced legislation in February 2011 that would overhaul the Authority by firing its board of directors and placing it directly under the authority of the Business, Transportation and Housing Agency. The new board members would need to be approved by the Legislature, would face stricter ethics standards and have to possess “specific expertise” in areas like finance, the environment and construction.
But the debate over who will run the state’s high-speed rail project is dwarfed by the much larger question: Should California be putting its resources and energy into developing such a system?
High-Speed Rail Is at a Critical Juncture (Office of the Legislative Analyst)
SB 517 Bill Tracker (Official California Legislation Information)
High-Speed Rail Overseas (Wikipedia)
Build the System
Where would this country be if President Dwight Eisenhower backed away from the enormous undertaking in the ‘50s of building the interstate highway system?
Defenders of high-speed rail in California argue that the economy won’t always be in the doldrums and that it is projects like this that will put people to work and stimulate growth. The availability of major federal funding, recently passed state bond issues and pressing environmental concerns have accelerated the timetable for developing high-speed rail and introduced not unforeseeable issues. They argue that a project of this magnitude can’t anticipate every funding source, develop every procedure and map out a precise timetable in a combustible political climate. Some of the work will have to be done on the fly.
If the High-Speed Rail Authority is not up to the task, as some critics argue, it can be revamped or the project can be shifted to Caltrans. That department has an annual $13 billion budget and certainly more than a passing familiarity with large transportation projects.
If the controversial first leg of the rail system in Northern California—chosen because it can be built quickly at the cheapest price) is not acceptable—there is plenty of time to choose a different route.
The rest of the world is moving forward into the 21st century utilizing already-developed modern technology. China and France each have over a thousand miles of rail, Japan has been at it since 1964 and even Spain has a viable system. This is not only doable, it is a priority, supporters say.
High-speed rail enthusiasts also make an environmental argument that we can’t afford to keep building roads that never seem to get ahead of the ever-growing crush of vehicular traffic. Mass transit within and between urban areas is environmentally sound, economically sensible and the smart thing to do. So it’s not surprising to find that some of the most vocal critics of high-speed rail are the Reason Foundation and the Heritage Foundation. Both are heavily financed by Koch Industries, an oil, gas, ranching and financial services conglomerate controlled by billionaire brothers David and Charles Koch. David Koch is director of the Reason Foundation.
These critics produce cost estimates that seem ridiculously high. Some people think “ridiculous” is the operative word. Knowledgeable people have estimated that the first leg from Merced to Bakersfield would cost $30 per kilometer. A comparable phase in France is running at $24 per kilometer and one in Belgian at $29 per kilometer.
Could the money be spent now on more immediate needs? Almost certainly. But supporters point out that that approach may be penny wise and pound foolish because California’s population will continue to grow. Some estimate that a successful rail system could allow the state, over time, to forego spending $100 billion on new freeways and airport expansion.
Gravy Train: High-Speed Rail’s Economic Benefits (International Political Economy Zone)
Californians Advocating Responsible Rail Design
Californians for High-Speed Rail
High-Speed Rail Authority (State Auditor, 2010) (pdf)
Is California’s High-Speed Rail Really a Boondoggle? (by Brad Plumer, Washington Post)
California HSR: Where Now? (by Alon Levy, Pedestrian Observations)
Don’t Build the System
The subtitle of a 2010 state auditor’s report might say it all: “It Risks Delays or an Incomplete System Because of Inadequate Planning, Weak Oversight, and Lax Contract Management.”
Critics of high-speed rail in California say it’s wildly too expensive—especially during a devastating economic downturn marked by massive state budget deficits. The need is questionable, the technology is still under development, the plan for implementation is terrible, the politics is disgusting, the state entity in charge is inexperienced and not up to the task, and the project is a huge diversion from much more pressing problems.
In short, it promises to be the boondoggle to end all boondoggles.
In 2008, the Reason Foundation Howard Jarvis Taxpayers Association and the Citizens Against Government Waste published a report projected a much higher price tag, much lower ridership, unattainable safety goals and slower speeds. It also said often-touted environmental benefits were non-existent.
The independent Legislative Analyst’s Office was critical of the High-Speed Rail Authority in a 2009 report that found its business plan to be “very general” and lacking details found in typical business plans. But its May 2011 report went further. In addition to outlining a number of problems facing the Authority, it pronounced the Authority at a “critical juncture” and echoed Senator Lowenthal’s call that it be taken over by BTH. “A new and separate division of Caltrans dedicated to the high–speed rail project would be better positioned, if equipped with the appropriate project delivery tools, to manage the development of the system in this phase.”
But despite widespread fear that the Authority isn’t up to the task, Governor Jerry Brown has resisted efforts to get rid of it. This will be the leadership that takes us stumbling and bumbling into an expensive dead-end.
Will Massive Debt Derail China’s High-Speed Rail Plans? (by Norihiko Shirouzu, Wall Street Journal)
Comparing U.S. Trains to Foreign Lines (All Things Considered-NPR)
Riled Over California’s High-Speed Rail (by Jason S. Mandell, LA Weekly)
A Call to Slow Down High-Speed Rail (by Shereen Meraji, All Things Considered-NPR)
Critics Question Cost, Ridership (by Colin Sullivan, Greenwire/New York Times)
Ridership Forecasts Unclear (by Dan Weikel and Rich Connell, Los Angeles Times)
Review of “Bay Area/California High-Speed Rail Ridership and Revenue Forecasting Study” (by David Brownstone, Mark Hansen and Samer Madanat, Institute of Transportation-University of California Berkeley) (pdf)
Former Secretaries of Predecessor Business, Transportation and Housing Agency
Traci Stevens, 2011-12
A resident of Roseville, Traci A. Stevens was appointed acting secretary by Governor Jerry Brown in January 2011. She first began government work in 1984 as policy assistant to state Senate Minority Leader Jim Nielsen. When Nielsen resigned his post as minority leader in 1987 following the loss of a special election the GOP hoped would help catapult it into the majority, he was replaced by Ken Maddy, who hired Stevens as his senior budget consultant. Stevens worked for Maddy until 1991, while studying public administration, government and public policy at the University of San Francisco from 1986-1989.
In 1991, Stevens accepted her first gubernatorial appointment as deputy director for legislative and regulatory review at the Department of Housing and Community Development. She moved to the Department of Consumer Affairs three years later to be deputy director for legislation overseeing a staff of approximately 20 analysts. In 1996, she became deputy secretary for legislation in the State and Consumer Services Agency and two years later did the same job for the California Energy Commission. She left government in 2000 and for five years was regional vice president for Traffic Research and Analysis, Inc. While out of government she was also a Realtor for RE/MAX Gold Real Estate and Lyon Real Estate.
She returned to state service in 2009 as deputy secretary for legislation for the Business Transportation and Housing Agency. She was made undersecretary for the agency in January 2011 and was elevated to acting secretary of the department shortly thereafter when Secretary Dale E. Bonner returned to the private sector.
Profile (LinkedIn)
Governor Schwarzenegger Announces Appointment (Imperial Valley News)
Ex Officio, Voting Member Designee (Employment Training Panel)
Dale E. Bonner, 2007–2011. The Los Angeles lawyer earned a bachelor of arts degree in political science from the University of Southern California in 1987 and a Juris Doctorate degree from Georgetown University Law Center in 1990. He was admitted to the California State Bar in 1991. Bonner entered public service in 1992 as deputy legal affairs secretary in the Office of Governor Pete Wilson. Four years later, he became deputy secretary and general counsel for the Business, Transportation and Housing Agency. In 1998, Bonner was appointed commissioner of the California Department of Corporations and stayed until 1999 before moving to the private sector. From 1999 to 2002, he was counsel to the law firm Hogan & Hartson before becoming a partner in the law firm Epstein Becker & Green, where he represented public and privately-held companies in regulatory and transactional matters until 2007. He sat on the Los Angeles City Ethics Commission from 2000-2005. Bonner, a Republican, returned to public service in 2007 when he was appointed secretary of the Business, Transportation and Housing Agency by Governor Arnold Schwarzenegger.
Epstein Becker Partner Appointed Secretary of State Agency (Metropolitan-News Enterprise)
Sunne Wright McPeak, 2003–2007
Maria Contreras-Sweet, 1999–2003. The first Latina to hold a cabinet-level position in California government.
Dean R. Dunphy, 1994–1998
Thomas S. Sayles, 1993
Carl D. Covitz, 1991–1992. Covitz resigned from the Wilson administration amid controversy over his use of CHP officers as personal drivers and his office’s move into a new Sacramento high-rise during a time of economic upheaval and budget cuts. He was a former Housing and Urban Development Department official in the Reagan administration. Although a Republican, Covitz had ties to both major political parties. He contributed to the campaigns of Democratic Attorney General John K. Van de Kamp and former Lieutenant Governor Mike Curb, a conservative Republican. He gave at least $2,000 to Wilson during his campaign for governor.
John K. Geoghegan, 1985–1990
Kirk West, 1983–1985
Lynn Schenk, 1977-1983
Richard T. Silberman, 1977. The millionaire former owner of Jack in the Box and longtime Democratic fund-raiser was convicted of money laundering in 1990 and sentenced to 46 months in federal prison. The flamboyant financier had been charged with seven felony counts in an alleged scheme to launder $300,000 in cash that an undercover FBI agent had portrayed as Colombian drug profits. Silberman was Governor Jerry Brown’s chief fund-raiser during his run for president in 1976 and later served as Brown’s chief of staff among the multiple roles he played in the administration.
Donald E. Burns, 1975–1976
Frank J. Walton, 1971–1973
James M. Hall, 1970–1971
Gordon Luce, 1967–1970
Former Commissioners (Los Angeles City Ethics Commission)