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State Funding Overview

California has several entities that collaborate to program transportation funding at the state level. These include the California Transportation Commission (CTC), the California Department of Transportation (Caltrans), California State Legislature (Legislature) and California State Transportation Agency (CalSTA). State statutes are used to establish policies and financial resources in order to indicate transportation initiatives and spending priorities. Most transportation revenues are generated through fuel taxes and vehicle fees. Every year, the Governor and Legislature appropriate funds for the transportation network through the annual budget. Additionally, the Legislature has the authority to designate transportation projects statutorily.

The CTC is a state commission that is responsible for programming and allocating a majority of transportation funds in California. Most of the state and federal funding programs are programmed and allocated through the CTC. The CTC is actively involved in the development and review of state and federal transportation legislation. Most CTC transportation funding programs are designated to the California Department of Transportation for administration.

Caltrans is responsible for administering a majority of the state and federal transportation funding programs and activities in California. In addition, Caltrans also has the responsibility of operating and maintaining state highways, conducting statewide planning, and supporting mass transit operations. To accomplish these activities, Caltrans has 12 district offices and one central headquarter. Each district covers several counties with the exception of District 12, which covers Orange County exclusively.

Some of the funding available at the state-level includes the State Highway Operation and Protection Program, Senate Bill 1, the Cap and Trade Program, the state Active Transportation Program, and the State Transportation Improvement Program (STIP).

More info on the programs can be found at

More information about OCTA’s policies for using state funds can be found in the Capital Programming Policies through the following link.

The Capital Programming Policies were approved by the OCTA Board of Directors on December 13, 2021 and can be found here.