Transportation Funding

SB 1 (Beall): The Road Repair and Accountablity Act of 2017

SB1-Logo.pngFor the last 10 years, the League of California Cities has been ringing the alarms about the poor conditions of our local streets and roads. Beginning with a report in 2008, the League partnered with CSAC and regional governments to review local conditions statewide through the biennial needs assessment report.  What we found in 2008 remained true in the 2016 Report, that there is over $70 billion in unmet funding needs for the local transportation network over the next 10 years. Absent any new funding, that need would have grown by $20 billion in another 10 years.

Below, is a listing of the estimated revenue generated from of SB 1 and when they go into effect:

  • $1.8 billion – 12 cent increase to gasoline excise tax (Nov 1, 2017)
  • $730 million – 20 cent increase to diesel excise tax (Nov 1, 2017)
  • $300 million – 4% addition to diesel sales tax (Nov 1, 2017)
  • $704 million – One-time loan repayment (2017-2020)
  • $1.6 billion – $25-$175 transportation improvement fee (Jan 1, 2018)
  • $1.1 billion – 17.3 cent reset of price-based gas tax (July 1, 2019)
  • $20 million - $100 zero emission vehicle registration fee (July 1, 2020)
For cities, SB 1 will double the amount of revenues they each receive from the state for their local street maintenance and rehabilitation needs. Annually, $500 to $650 million will go to cities statewide, allocated on a per capita basis. A vast majority of the new revenues for cities will come out of the newly created Road Maintenance and Rehabilitation Account (RMRA) where cities would have to prioritize fixing their existing infrastructure first before having some additional flexibility for those funds for other transportation needs. 

For more information on SB 1 project information and locations, visit CalTrans website, Rebuilding CA.
 
Bill Text, Summary, and Analysis:
Funding Estimates:
California Transportation Commission: Local Streets and Roads Funding - Annual Reporting Guidelines

The League continues to play a role in the implementation of SB 1 by working with the California Transportation Committee (CTC) to give feedback on draft reporting guidelines and provide techincal support to cities. The final guidelines will be formally adopted by the CTC in August.

Webinars:
Other Major Transportation Legislative Proposals: SCA 2 (Newman) and ACA 5 (Frazier)
Fix Our Roads Coalition

The League of California Cities® is part of the Fix Our Roads Coalition, a broad coalition of cities, counties, labor, business and transportation advocate that formed to meet Gov. Jerry Brown’s call to address California’s chronic transportation infrastructure funding shortfall.  The coalition supports seven core principles:

  • Make significant investment in transportation infrastructure;
  • Focus on maintaining and rehabilitating the current system;
  • Invest a portion of diesel tax and/or Cap-and-Trade revenue to high priority goods movement projects;
  • Raise revenues across a broad range of options;
  • Equal spilt between state and local projects;
  • Strong accountability requirements to protect the taxpayers’ investment; and
  • Provide consistent annual funding levels.

 More information on how to join the coalition can be found at www.fixcaroads.com/join-our-coalition/

Other Resources
© League of California Cities