The department must prepare a budget proposal and submit it to the Governor, including details funded by the State Highway Account. They must also inform the commission about the assumptions and strategies they plan to use for the budget.

The commission has a role in reviewing these assumptions and strategies, and they should send back comments and recommendations to the department. This helps ensure transparency and oversight in budgeting for highways.

This law section outlines that the budget for the State Highway Account must be included in the fiscal year's printed budget submitted to the Legislature. The level of detail in this budget is agreed upon by the Department of Transportation and the Department of Finance, and it should follow the requirements set by another specific law. However, if there is any conflict, the rules in this article take precedence.

Additionally, the Department of Transportation has the responsibility to manage how money is spent through the fiscal year, dividing it into quarters or other periods, regardless of another related law's requirements.

This law requires the California Department of Transportation to create effective budgeting, accounting, and management systems. These systems must track staffing and spending, as well as revenue and expenses, aligning with general government code standards. The aim is to provide clear and valuable information to the Legislature for better oversight of the department's activities and finances.

The systems must consider the unique aspects of the department's programs and be developed with the input of various government committees and the Department of Finance for thorough oversight and collaboration.

This law outlines how funds in the State Highway Account should be used to make the most out of available federal funds, focusing first on maintaining and improving state highways, enhancing safety without adding lanes, expanding capacity, and supporting environmental projects. The budget is structured by program elements like administration, maintenance, and improvements, and must align with the state transportation improvement program. The proposal must be submitted to the legislature by May 1.

Specific projects aren't designated in the budget or legislative acts, and the commission defines what constitutes major and minor projects. The Legislative Analyst evaluates each program's expenditures. The Department of Transportation needs to provide detailed yearly reports on their planned projects, projected costs, staffing needs, and workload. These reports help inform budgeting decisions and ensure transparency in how highway funds will be spent.

In this law, it's stated that when a contract is awarded or a day-labor project begins, it's considered the moment when the entire obligation of that contract or project is incurred, unless stated differently in another specific section (Section 170).

This law section deals with how the department can handle payments for long-term construction projects. If a project is expected to take more than one fiscal year to complete, the department can specify in the contract how much money will be paid to the contractor during the first and second years. The contract needs to ensure the project is finished and fully paid for. Additionally, for budgeting purposes, the department can propose, and the commission can allocate, the necessary funds for what's expected to be paid in a fiscal year, including any engineering or additional charges.

This law says that if a particular project in California isn't expected to be finished in one fiscal year, the department can finance it using cash. However, this is only allowed if the department has extra bonding authority that hasn't been designated for any other projects.

Before the start of each fiscal year, the department can ask for bids on construction projects it plans to budget for that year. However, they can't finalize any contracts until enough money is officially designated and the commission approves the funding for the project.