Project Management

1996/97 Performance Report

CAPITAL SUPPORT PERFORMANCE MEASURES

I. PROGRAM PERFORMANCE MEASURES FOR CAPITAL SUPPORT

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. This 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, and evaluate both the Department’s cost and timeliness in completing work.

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 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. Much data is involved in these measures from the project level to the department level. This report will address the measures only to the department level.

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 1996/97, total Caltrans expenditures were $4.90 billion of which $4.44 billion or 91% were Highways Program expenditures. The dominance of the Highways Program is shown in the following chart:

Column chart of Caltrans Project Management from 1996 to 1997 by activity and percent expenditure

Caltrans Project Management from 1996 to 1997 by Activity and Percent Expenditure
Activity Category	FY 1996/97 Dollars	FY 1996/97 Percent
Aeronautics	$8,055,885	0.2%
Highways	$4,444,737,737	92.3%
Mass Transportation	$322,189,723	6.7%
Transportation Planning	$40,652,316	0.8%
Administration	$79,788,926	1.7%
TOTAL	$4,815,635,661	100%

Of the $4.44 billion in Highways Program expenditures, capital support represents $690 million and capital outlay $2,100 million. The percentages for these and the other elements of the Highways Program are shown below:

Pie chart of Caltrans project management from 1996 to 1997 by core program and percent expenditure

1996/97 Capital Support Expenditures by Activity Category and Percent Expenditure
Activity Category	Percent Expenditure
Equipment Services	2%
Maintenance	10%
Operations	3%
Legal Services	1%
Administration	3%
Planning & Research	1%
Local Assistance	14%
State/Local Partnership	2%
Capital Support	16%
Capital Outlay	48%

The percentage breakdown of the $690 million of capital support is shown below:

Pie chart of Caltrans Project Management from 1996 to 1997 by activity and percent expenditure

1996/97 Capital Support Expenditures by Activity Category
Activity Category	Percent Expenditure
Locally Funded Projects	6%
Overhead	15%
Owner Operator	13%
State Program Projects	66%

C. Relationship of Capital Support to Capital Outlay

Perhaps the most important and 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 1996/97 is shown below. This shows a three-way breakdown of capital support and 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: Based on recent trends and Project Management Improvement efforts, the Project Management Program is recommending a goal of 33%.

It is important to note that the capital support and capital outlay expenditures represent different sets of projects at different times. Most capital support effort is expended on projects to be awarded in the future. Similarly, capital outlay is expended for projects developed in the past.

Area chart of Caltrans Project Management from 1988 to 1997 by support category and percent expenditure

1988/89 through 1996/97 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
Construction	14%	12%	12%	14%	15%	15%	15%	12%	12%
Design & Right of Way	20%	20%	19%	21%	24%	17%	19%	19%	16%
Preliminary/ Environmental	12%	10%	11%	9%	8%	4%	4%	3%	2%
TOTAL	46%	42%	42%	43%	46%	36%	38%	34%	30%