CTC approves short‑term SHOP allocation plan, citing disaster spending and rising costs

The California Transportation Commission on Wednesday approved a Caltrans plan to manage remaining State Highway Operation and Protection Program (SHOP) capacity for the 2025–26 fiscal year, prioritizing emergency and reactive safety needs as officials said disaster recovery and higher construction costs are limiting available funds.

Caltrans budgets chief Keith Duncan presented the allocation plan, telling commissioners that “we have allocated over 70%, 71%, onto projects through October, which only leaves about $1,300,000,000 for the rest of the year,” and that a sustained run of major damage and rising bid prices means the department cannot allocate every project it had planned this year.

The department’s proposed approach reserves funding first for emergencies and reactive safety, then evaluates remaining projects on a case‑by‑case basis using four priorities: projects required to meet state or federal mandates; projects of significant statewide interest; targeted asset‑management performance activities (bridge, pavement, traffic management); and facility security projects. Keith Duncan said the intent is to keep allocations “within the current fiscal constraints that are identified in the fund estimate.”

Commissioners debated the fiscal and performance trade‑offs before Commissioner Tiffany moved approval of the allocation plan and the motion passed. The commission’s action directs Caltrans to implement the plan and report back on allocation status at subsequent meetings.

Why it matters: Caltrans has spent large sums responding to storm and fire damage in recent years, a pattern staff said is absorbing a growing share of program dollars and forcing project timing changes. Staff said the allocation plan is intended to keep the agency able to respond to emergencies while protecting SB‑1 performance targets by rebalancing projects into the next SHOP cycle as needed.

What comes next: Caltrans and commission staff will continue to track g12 delegated adjustments, bid savings and any new federal or state funds and provide updates at each commission meeting. Projects that cannot be allocated this fiscal year may be programmed into the draft 2026 SHOP for later allocation and delivery.

Actions: The commission adopted the 2024 Caltrans SHOP allocation plan (motion moved by Commissioner Tiffany). No individual roll‑call tally was recorded in the transcript beyond the chair calling the motion approved.