Transportation Funding in California

Senate Bill 1, the Road Repair and Accountability Act of 2017, was signed into law on April 28, 2017. This legislative package invests $52.4 billion over the next decade to fix roads, freeways and bridges in communities across California and put more dollars toward transit and safety.

The following funds will be split equally between state and local investments over a ten-year horizon:

Fix Local Streets and Transportation Infrastructure (50 percent):

– $15 billion in “Fix-It-First” local road repairs, including fixing potholes
– $7.5 billion to improve local public transportation
– $2 billion to support local “self-help” communities that are making their own investments in transportation improvements
– $1 billion to improve infrastructure that promotes walking and bicycling–double the existing funding levels
– $825 million for the State Transportation Improvement Program local contribution
– $250 million in local transportation planning grants.

Fix State Highways and Transportation Infrastructure (50 percent):

– $15 billion in “Fix-it-First” highway repairs, including smoother pavement
– $4 billion in bridge and culvert repairs
– $3 billion to improve trade corridors
– $2.5 billion to reduce congestion on major commute corridors
– $1.4 billion in other transportation investments, including $275 million for highway and intercity-transit improvements.

Ensure Taxpayer Dollars Are Spent Properly with Strong Accountability Measures:

– Constitutional amendment, ACA 5 for voter approval on the June 2018 ballot, to prohibit spending the funds on anything but transportation
– Inspector General to ensure Caltrans and any entities receiving state transportation funds spend taxpayer dollars efficiently, effectively and in compliance with state and federal requirements
– Provision that empowers the California Transportation Commission to hold state and local government accountable for making the transportation improvements they commit to delivering
– Authorization for the California Transportation Commission to review and allocate Caltrans funding and staffing for highway maintenance to ensure those levels are reasonable and responsible
– Authorization for Caltrans to complete earlier mitigation of environmental impacts from construction, a policy that will reduce costs and delays while protecting natural resources.

Guided by the principles set forth by President Ronald Reagan when he signed bipartisan legislation to increase the federal gas tax in 1982, today’s transportation investment package is funded – over a ten-year horizon – by everyone who uses our roads and highways, in the following ways:

– $7.3 billion by increasing diesel excise tax 20 cents on November 1, 2017
– $3.5 billion by increasing diesel sales tax to 5.75 percent on November 1, 2017
– $24.4 billion by increasing gasoline excise tax 12 cents on November 1, 2017
– $16.3 billion from an annual transportation improvement fee based on a vehicle’s value starting January 1, 2018
– $200 million from an annual $100 Zero Emission Vehicle fee starting July 1, 2020
– $706 million in General Fund loan repayments.

The legislative package will cost most drivers less than $10 a month and includes strict accountability provisions to ensure the funds can only be spent on transportation.

The new funding will allow Caltrans to make major repairs to California’s transportation infrastructure including 17,000 miles of pavement, 500 bridges and 55,000 culverts over the next ten years. The package will also fund huge investments in repairing local streets and roads. The package also provides historic levels of public transportation funding — roughly double what was provided by Proposition 1B in 2006.

CTC Implementation

The California Transportation Commission has unanimously approved the an implementation plan for SB 1. The SB 1 Implementation Plan discusses the timelines for the guidelines development process for each program that will be impacted by SB 1. The Workshops are open to State and Federal Agencies, Tribal Governments, Regional and Local Agencies, as well as organizations representing environmental, social equity, land-use and business perspectives, and interested stakeholders.