The Governor on October 11, 2009 signed AB 798, creating the California Transportation Financing Authority (CTFA) within the State Treasurerís Office. The statute authorizes the CTFA to issue, or approve the issuance of, revenue bonds to finance transportation projects. The CTFA will review proposed projects to ensure they are financially sound, and has the ability to approve tolls as part of the financing plans to repay revenue bonds.
Paying for transportation projects has grown increasingly difficult. One of the largest funding sources historically has been gasoline taxes. Those revenues, however, have not kept pace with the stateís construction and improvement needs. Meanwhile, state and local government general fund budgets are under increasing strain. That makes it less feasible, and less prudent, to finance transportation projects through the issuance of general obligation bonds, which are repaid by general funds.
AB 798 provides innovative financing that will help California meet its transportation needs without busting state and local budgets. Through the CTFA, local transportation agencies will have greater ability to sell revenue bonds -- backed by non-general fund monies -- in the municipal bond market. And the state will ensure that projects and financing are consistent with state transportation policy objectives.
The Treasurerís Office is working to get the CTFA up and running. In the interim, please sign up to receive email updates from CTFA so we can keep you posted on the progress. If you have any questions about CTFA, please contact Alan Gordon at (916) 653-2995 or via email.