Department of Transportation Quarterly Finance Report Third Quarter 2006-07

1. Tab 8Ref 3.6 Department of TransportationQuarterly Finance ReportThird Quarter2006-07 Presented to the California Transportation Commission June 7, 2007

2. State Highway Account $497M(48% below forecast) Continuing federal resolutions Delayed TIF transfers Seasonal expenditures Public Transportation Account $401M(11% below forecast) Items-in-transit Traffic Congestion Relief Fund $1,080M(44% above forecast) TDIF loan repayment Early Prop. 42 Delayed LONPs Transportation Investment Fund $516M(204% above forecast) Delayed TIF transfers Early Prop. 42 Transportation Deferred $451M(7% above forecast) Investment Fund Ending Cash BalanceActuals vs. Forecast

3. Allocations vs. PlanBy Program 58 percent of capacity allocated through third quarter State Highway Operations & Protection (SHOPP) $1.890B • $130M in Q3 • $1.302B YTD • $588M Remaining State Transportation Improvement Program (STIP) $1.290B • $152M in Q3 • $867M YTD • $423M Remaining Traffic Congestion Relief Program (TCRP) $1.684B • $581M in Q3 • $1.158B YTD • $526M Remaining

4. Outlook for Funding • State Highway Account • Improving in near-term • Federal funding at risk over long-term • Public Transportation Account • High current fuel prices  Fall revenue Transfers • 2007-08 Budget Proposals • Other Trends • Slowing Housing Sector • Contract Award Savings

5. Recommendations • Maintain Current Allocation Plan of $5.7B • Monitor Federal Funding Situation • Update Forecast Models for 2007-08 • Seasonal construction • Transfer schedules • Capital Outlay Support • Other changes to conform to the 2007-08 Budget • Because proposed changes continue, no new allocation plan will be presented at this time

6. Questions