California Department of Transportation

Project Management

1998/99 Performance Report

CAPITAL SUPPORT PERFORMANCE MEASURES

A.  Background

In December 1995, the Department submitted its REPORT TO THE LEGISLATURE ON CAPITAL SUPPORT PERFORMANCE MEASURES in response to supplemental report language in the 1995 Budget Act. That report proposed twelve measures for evaluating all major capital outlay support functions. The budget language stated that the proposed measures must provide an accurate measure of annual efficiency, provide a consistent basis for year-to-year comparison, evaluate the Department's cost and timeliness in completing work, and measure the quality of completed projects.

In the Department's three-tiered scheme of measures, these twelve capital support performance measures are program measures for the statewide Capital Outlay Support (COS) Program. Their relationship to corporate measures will be described later in this report.

The purpose of this report is to summarize, at the Program level, the status of the capital outlay support performance measures, report data for these measures for the past few years, where available, and recommend targets, where possible.

B.  Context of Capital Support in the Department

Performance Measure #1 of the Report to the Legislature proposed "pie" charts showing PY and dollar expenditures for the Department's programs, the elements of the Highways program, and the parts of capital support. This is not a performance measure as such, but rather it sets the context for the other measures. For the purpose of this summary report, a few of these charts are shown to set the context.

In FY 1998/99, total Caltrans expenditures were $5.31 billion of which $4.60 billion or 87% were Highways Program expenditures. The dominance of the Highways Program is shown in the following chart:

Expenditures on the Five Caltrans Programs in the 1998/99 Fiscal Year

Column chart of of Caltrans Project Management from 1998 to 1999 by activity and percent expenditure Caltrans Project Management from 1998 to 1999 by activity and percent expenditure

Caltrans Project Management from 1998 to 1999 by Activity and Percent Expenditure
Core Program FY 1998/99
Dollars
FY 1998/99
Percent
Aeronautics
$15
0.27%
Highways
$4,598
86.64%
Mass Transportation
$409
7.70%
Transportation Planning
$50
0.95%
Administration
$235
4.44%
TOTAL
$5,307
100%

Of the $4.60 billion in Highways Program expenditures, capital support represents $920 million and capital outlay $1.945 billion. The percentages for these and the other elements of the Highways Program are shown below:

Pie chart of Caltrans Project Management from 1998 to 1999 by program element and percent expenditure

1998/99 Capital Support Expenditures by Activity Category and Percent Expenditure
Activity Category Percent Expenditure
Equipment Services < 1%
Maintenance 16%
Operations 3%
Legal Services 2%
Planning & Research 1%
Local Assistance 15%
State/Local Partnership 2%
Capital Support 20%
Capital Outlay 42%

The percentage breakdown of the $920 million of capital support is shown below:

Pie chart of Caltrans Project Management from 1998 to 1999 by program element and percent expenditure

1998/99 Capital Support Expenditures by Activity Category and Percent Expenditure
Activity Category Percent Expenditure
Locally Funded Projects 4%
Overhead 13%
Owner Operator 11%
State Program Projects 72%

C.  Relationship of Capital Support to Capital Outlay

Perhaps the most sensitive of all the capital support measures is the ratio of capital support to capital outlay. This is Performance Measure #2 in the Report to the Legislature. This relationship for each year from FY 1988/89 to 1998/99 is shown below. The chart and table show a three-way breakdown of capital support, and the overall relationship to capital outlay dollars. The data for both capital support and capital outlay exclude expenditures on locally funded projects. Capital support also excludes owner-operator services.

Target: This measure is used to analyze trends and, therefore, there is no specific goal associated with this measure.

It is important to note that the capital support and capital outlay expenditures represent different sets of projects at different times. Capital support effort for Preliminary Engineering and, to a lesser degree Design, is expended on projects that will be under construction in some future fiscal year. Similarly, capital outlay is expended for projects which incurred Preliminary Engineering and Design support expenditures in past fiscal years. Over time, however, the trend can be analyzed to provide valuable management information. The chart on the next page depicts this trend.

Area chart of Caltrans Project Management from 1998 to 1999 by program element and percent expenditure

1988/89 through 1998/99 Capital Support Expenditures as a Percentage of Capital Expenditures
Capital Support Category FY 88/89 FY 89/90 FY 90/91 FY 91/92 FY 92/93 FY 93/94 FY 94/95 FY 95/96 FY 96/97 FY 97/98 FY 98/99
Construction 14% 12% 12% 14% 15% 15% 15% 12% 12% 16% 15%
Design & Right of Way 20% 20% 19% 21% 24% 17% 19% 19% 16% 17% 20%
Preliminary/ Environmental 12% 10% 11% 9% 8% 4% 4% 3% 2% 4% 8%
TOTAL 46% 42% 42% 43% 46% 36% 38% 34% 30% 37% 43%

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