Budget

The Overall Work Program (OWP) is an inventory of the regional planning projects and programs that will be undertaken during the fiscal year. Planning, our core responsibility, is where everything begins. It encompasses budgeting, data and research, community engagement, and more. Examples of this work include the Regional Plan, transit planning, and grants. All of the OWP projects aim to improve quality of life for residents and visitors. TransNet is an important funding source for many grants, projects, and programs in the OWP.

The Capital Program budget is the largest component of the SANDAG Program Budget. It includes the multiyear TransNet Major Corridors and Regional Bikeway Program and other transit and capital improvements. Capital projects include near-term and long-term infrastructure projects and encompass activities such as environmental clearance efforts, design, outreach, engineering, and construction. In addition to major corridor and bikeway projects, this component of the budget includes rail projects, mobility improvements at the border, environmental mitigation, and more.

This component of the budget covers management of ongoing operational programs and customer services that deliver enhanced mobility and public safety services. It provides for maintenance and support of intelligent transportation and regional law enforcement data systems that support travelers and public safety agencies in the San Diego region.

Internal operations costs are incorporated into the projects outlined in the three primary components listed above. More details on TransNet, internal operations, the Office of the Independent Auditor, and human resources can be found in their own chapters.

The Regional Plan provides a long-term vision for the region and is updated every four years. From the Regional Plan, the Board and agency leadership work with our partners to identify which projects to prioritize. We then identify or pursue funding to complete those projects.

Once funding is identified for a project or program in the approved Regional Plan, it moves into the annually updated SANDAG Program Budget. The SANDAG Program Budget spans one fiscal year (July 1 to June 30) for annual planning projects and 10 years for capital projects. A draft budget goes to Caltrans and the Board, who provide feedback. After incorporating that feedback, a final budget is approved by the Board, usually in May of each year. Throughout the year, the budget is amended to reflect current Board priorities, changes in revenue and funding, refined cost estimates, and adjustments based on project progress. Approval authorizations follow Board Policy No. 001 and Board Policy No. 017 and are based on the size of the amendment. Amendments of up to $300,000 may be approved by the Chief Executive Officer, who reports these changes to the Board on a monthly basis. Amendments from $300,000 to $500,000 may be approved by a Policy Advisory Committee, and any amendment over $500,000 must be approved by the Board.

Finally, the projects in the approved budget move into the Regional Transportation Improvement Program (RTIP). This five-year, near-term, investment plan shows that funds are committed to execute projects and programs identified through the Regional Plan and Program Budget process. Projects must be in the RTIP in order for SANDAG to access federal, state, and TransNet funds.

Throughout the budgeting process, we provide opportunities for the public to provide input and help shape these documents, which are finally reviewed and approved by the Board.

Each year, SANDAG updates its forecast of TransNet revenue to reflect the latest data and economic conditions. TransNet funds local transportation projects consistent with the Regional Plan including transit, highway, freight, bikeway, and walkway programs, plus an environmental conservation program, transit fare subsidies, and grants for smart growth, active transportation, and transportation services for seniors and persons with disabilities. It also helps us secure additional federal, state, and local funds.

State and federal government budgets also contribute to SANDAG’s annual revenue based on a formula determined by population and transit service areas. Federal and state formula funds help us pay for planning and capital projects throughout the region. This funding also provides funding for transit operations for MTS and NCTD and capital projects.

Dedicated grants, enterprise revenue, and ongoing multiyear state and federal grant programs provide funding for projects and programs in the OWP, Capital Program, and Regional Operations and Services budget components. In particular, SANDAG, local agencies and the transit agencies are eligible for discretionary funds under many federal and state programs. SANDAG, in partnership with other local public agencies, continuously competes for discretionary grants for its planning and capital programs that are added to the budget as they are awarded. Revenue generated from the toll roads we operate also contributes to our budget.

Additionally, the 19 SANDAG member jurisdictions are assessed a fee according to population, and users of the Criminal Justice Clearinghouse and ARJIS pay user fees. Assessments and fees fund Board expenses, the Office of the Independent Performance Auditor, government relations activities, Criminal Justice Clearinghouse reporting, and other regional planning efforts.