The Public Works Department has been working in partnership with the California State Association of Counties, County Engineers Association of California, League of California Cities, Rural Counties Task Force, and Regional Transportation Agencies in an effort to assess the condition of the local streets and roads network operated by cities and counties in California. Local streets and roads make up 81 percent of the state’s roads and are used by bicyclists, pedestrians, buses, trucks, and family automobiles. From the moment we walk out the front door in the morning to the time we reach our destination, we have to travel on local streets or roads.  
  
The purpose of the California Statewide Needs Assessment report is to provide critical analysis and information on the local transportation network’s condition and funding needs. The report addresses the following questions: What are the pavement conditions of local streets & roads? What will it cost to bring pavements to a Best Management Practices (BMP) or most cost-effective condition? How much will it cost to maintain them once we achieve the BMP or optimal pavement condition? What are the needs for the essential components to a functioning system? Is there a funding shortfall? If so, what is it? What are the solutions?  
  
While federal and state governments regularly assess their system needs, no such data existed for the local component of the state’s transportation network. Historically, statewide transportation funding investment decisions have not been based on local pavement condition data, or adequate recognition for the local system. Further, recent actions to remove city and county discretion over federal and state funding have diminished resources available to the local system.  
  
Data collection for the report was a huge success. The report is based on 93% of the state’s local streets and roads. 85% of the agencies responding used an industry accepted Pavement Management System which lent to the credibility of the results obtained.  
  
Pavement condition is measured using a pavement condition index (PCI). The scale is from 0-100 with 0 indicating failed pavement and 100 indicating excellent pavement (0-25 failed, 25-50 poor, 50-70 at risk, 70-100 good-excellent). The statewide average pavement condition index is 68. Although this may not look bad, if one looks at a pavement deterioration curve as provided in the report, the PCI is on the “edge of a cliff” in terms of its location in the pavement life cycle. The County’s PCI is 81. Comparatively, we have done a good job in maintaining our approximately 660 miles of roads. However, with declining revenue due to more fuel efficient vehicles, the County’s PCI has declined from 87 in 2004 to 81 in 2008. With a continued decline in revenue, our PCI will soon fall into the at-risk category. We have seen our residential roads decline from 84 in 2004 to 74 in 2008.  
  
Our main revenue streams are Proposition 42 funds and the Highway Users Tax Account (HUTA or Gas Tax). Unfortunately, the State deferred the first two quarters of Proposition 42 funds to cities and counties in FY 2009-10 and deferred seven months of HUTA subventions in FY 2009-10. With the Legislative’s Analysts’ Office projecting another approximately $20 billion budget deficit over the next 18 months, transportation revenues will continue to be in jeopardy.  
  
The report indicates that if the local streets and roads network does not get sufficient funding, the PCI levels will decline from 68 to 48 by 2033. The backlog of work more than doubles from $37 billion to $79 billion (2008 real dollars and does not include escalation or inflation). In addition, the report indicates a 10-year need of $99.7 billion for pavements and essential road components. With existing funding levels at $28.3 billion, this leaves a $71.4 billion 10-year shortfall in transportation funding for local streets and roads. The $71.4 billion equates to an additional 38 cents a gallon. For the average driver (10,000 miles/year, a car with 20 mpg), this equates to approximately an extra 50 cents a day.  
  
The current state gas tax of 18 cents per gallon has been in place since 1994. Since then, inflation has eroded the value of per gallon tax revenues by 28 percent, so that 18 cents is worth 13 cents today (in constant dollar terms) based on the California Consumer Price Index (CPI). A more targeted measure of inflation tied to the costs of highway construction projects could also be used to assess the current value of the state gas tax. For example, based on the Producer Price Index for Highway and Street Construction, the 18 cent gas tax is worth 11 cents today.   
  
Travel on California roads increased by 28 percent between the years 1991 and 2007. Meanwhile, gas tax revenues (adjusted for inflation) have not increased. As a result, revenue generated per vehicle–mile traveled declined by more than 20 percent over the period. Given the significant increases in highway construction costs over the last several years, the Producer Price Index for Highway and Street Construction discussed above would likely show an even greater decline in gas tax revenues relative to vehicle–miles traveled.  
  
To bring the state’s local street and road system to a best management practice level where the taxpayer’s money can be spent cost effectively, we will need up to approximately $51.7 billion of additional funding for pavement alone and more than $71 billion, including essential components, for a functioning system over the next 10 years. The sooner this is accomplished, the less funding will be required in the future.  
  
The conclusion of the study is that if funding levels remain at existing levels, California’s local streets and roads will deteriorate rapidly within the next 25 years to a poor condition. Unless this condition is addressed, costs to maintain the system will only continue to grow, while the quality of California’s local transportation network deteriorates. Additional information on the report can be found at www.SaveCaliforniaStreets.org .