Silicon Valley State Senator Dave Cortese Wants the State to Audit Two Transportation Agencies Over Lack of Accountability

SACRAMENTO – California State Senator Dave Cortese (D-Silicon Valley), chair of the Senate Transportation Committee, is asking the state auditor to audit both the Metropolitan Transportation Commission (MTC) and the Bay Area Toll Authority (BATA) because both agencies need to be held accountable for how they spend taxpayers’ money including toll money. 

Recent toll hikes are the latest example of the public’s confusion about how MTC and BATA spends their money.  

“People who drive the seven Bay Area state-owned bridges want answers,” said Senator Dave Cortese, chair of the Senate Transportation Committee. “MTC recently increased tolls again by $2.50 which on top of prior increases will total as much as $11.50 for bridge crossings within five years. While prior toll increases approved in 2018 were supposed to be spent on bridge maintenance and repair costs, it is unclear exactly where that money went. Now BATA is increasing tolls again saying additional maintenance and repair costs were not factored into the 2018 measure. No wonder the public is so confused.”  

“What is troubling is that the increasing toll revenue is consolidated into a single pool making it very challenging to track how the funds from each regional measure and from the seismic safety increased are being used. Are these regional measures fulfilling the promises made to the public? With MTC seeking even more regional  tax dollars from the voters in 2026, it is critical that this audit gives them a clean bill of health.” 

Senator Cortese has requested the audit from the California Joint Legislative Audit Committee (JLAC). If JLAC approves the request, the California State Auditor's Office conducts the audit. The Legislature may hold hearings and pass legislation based on the audit’s findings.

As chair of the Senate Transportation Committee, Cortese asked for the following information: 

• Evaluate the process MTC used to determine that a $2.50 toll increase was necessary. What factors were considered? Did MTC adopt an appropriate expenditure plan for the use of this additional toll revenue? 
• In response to the 2018 State Audit “Toll Bridge Seismic Safety Program: The State Could Save Millions of Dollars Annually by Implementing the Lessons Learned,” MTC adopted a risk management policy to mitigate cost overruns on infrastructure projects. Assess the effectiveness of this policy, including whether it aligns with accounting best practices and whether it has resulted in measurable cost savings or cost avoidance. If so, detail the amount saved and the specific projects affected. 
• MTC/BATA currently oversees four toll-funded programs: Seismic Safety, RM1, RM2, and RM3. Analyze how MTC tracks both past and future toll revenues and liabilities for each program to ensure funds are used as intended and for projects approved by the Legislature and voters. 
• For each program, provide a retrospective and prospective analysis, broken down by year, of: 
• Annual toll revenue; 
• Annual expenditures broken down by specific capital projects and operational obligations; 
• Annual bond and other income, payments, and remaining liabilities; 
• The timeframe from the initial debt obligations to the projected completion of all debt and capital expenditures. 

Letter to JLAC Chair:

February 13, 2025

Honorable John Harabedian

Joint Legislative Audit Committee

1020 N Street, Room 107

Sacramento, CA 95814

Re: Bay Area Toll Authority Audit Request

Dear Chair Harabedian,

The Bay Area Toll Authority (BATA) is a state agency established by the California State Legislature in 1997 to oversee tolls on the Bay Area's seven state-owned toll bridges. In 1997, the California Legislature expanded BATA's role to include the administration of all toll revenues and the joint oversight of the toll bridge construction program alongside Caltrans and the California Transportation Commission.

In 1998, the Metropolitan Transportation Commission (MTC) began managing BATA's operations. As the planning agency, MTC is responsible for implementing three regional bond measures - Regional Measure 1 (RM1), RM 2, and RM 3 - and the revenue from three separately approved toll increases for seismic retrofitting. Together, these measures impose an $8 toll on all automobiles crossing the seven state-owned bridges. The revenue from these tolls supports the operation, maintenance, and replacement of the bridges, including seismic retrofits. In addition, the measures fund transportation projects in the corridors adjacent to the bridges, as well as transit services and freeway operations under RM 2 and RM 3. Importantly, all three regional measures are in perpetuity.

Recently, MTC proposed annual increases of fifty cents over the next five years, raising the toll from $8 to $10.50 by 2030. However, some stakeholders have raised concerns about the necessity of this increase. Specifically, there is skepticism regarding the allocation of toll revenue, as it is consolidated into a single pool, making it challenging to track how the funds from each regional measure and from the seismic safety increases are being used and whether the regional measures are fulfilling the promises made to voters.

An independent review would help provide clarity on the financial management of these funds and foster confidence in the ongoing toll increases. I respectfully request that the State Auditor conduct a review of MTC/BATA’s use of toll funds to determine the following:

• Evaluate the process MTC used to determine that a $2.50 toll increase was necessary. What factors were considered? Did MTC adopt an appropriate expenditure plan for the use of this additional toll revenue?
• In response to the 2018 State Audit “Toll Bridge Seismic Safety Program: The State Could Save Millions of Dollars Annually by Implementing the Lessons Learned,” MTC adopted a risk management policy to mitigate cost overruns on infrastructure projects. Assess the effectiveness of this policy, including whether it aligns with accounting best practices and whether it has resulted in measurable cost savings or cost avoidance. If so, detail the amount saved and the specific projects affected.
• MTC/BATA currently oversees four toll-funded programs: Seismic Safety, RM1, RM2, and RM3. Analyze how MTC tracks both past and future toll revenues and liabilities for each program to ensure funds are used as intended and for projects approved by the Legislature and voters.
• For each program, provide a retrospective and prospective analysis, broken down by year, of:
• Annual toll revenue;
• Annual expenditures broken down by specific capital projects and operational obligations;
• Annual bond and other income, payments, and remaining liabilities;
• The timeframe from the initial debt obligations to the projected completion of all debt and capital expenditures.

Thank you for your consideration of this request. Contact Sunshine Borelli at Sunshine.Borelli@sen.ca.gov for questions.

Sincerely,

Dave Cortese

California State Senate, District 15