The 1989 Transportation Blueprint Legislation (Transportation Blueprint) contains provisions increasing transportation taxes, fees, and bond proceeds and requires that they be allocated and spent on specified transportation programs. Based on our review for fiscal year 1993-94, we found that the policies and procedures of the California Transportation Commission (commission) and the Department of Transportation (department) provide reasonable assurance that the State implements the program consistent with the underlying legislation. The projects we examined adhere to statutory requirements for their respective programs. In addition, we found that the commission's allocations of these transportation funds in fiscal year 1993-94 were allocated according to the applicable program statutes and guidelines. Further, the State spent these transportation funds in accordance with statutory requirements and correctly calculated its formula-based disbursements of transportation funds to cities and counties.