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Funding Estimates for Road Recovery and Accountability Act and Highway Users Trust Account

April 10, 2017
With the passage of the Road Recovery and Accountability Act on April 6, the League’s fiscal consultant, Michael Coleman, has prepared estimates on funding cities will receive through SB 1 (Beall) and the Highway Users Trust Account (HUTA) revenues.
 
Gov. Jerry Brown is expected to sign this legislation in the near future.

The estimates of local streets and roads allocations for FY 2017-18 and FY 2018-19 may be used for budgeting and financial planning. Those are: Department of Finance (DOF) estimates for the first 10 years of the act are available.
 
These tables include projections of previously existing HUTA funds as well as funds from the new 2017 Act. SB 1 establishes a new Road Maintenance and Rehabilitation Account (RMRA — Streets and Highways Code Sec 2030 et sec.) The RMRA allocations include funds from the following taxes enacted by the Road Repair and Accountability Act of 2017: the 12 cent gasoline excise tax, 20 cent diesel fuel excise tax, and transportation improvement fees (vehicle registration taxes). In addition, the Act provides for the payment of $225 million of transportation loans to be repaid over three years.
 
FY 2017-18 is a partial year of funding from these new sources. The first full year of funding will be FY 2018-19. Allocations to local streets and roads and other transportation programs will increase substantially in FY 2018-19. The California DOF estimates that RMRA funds to local streets and roads in FY 2017-18 will be $453 million including loan repayments. In FY 2018-19, this figure goes up to $1.2 billion.
 
The League prepared a summary of the provisions of the Road Repair and Accountability Act of 2017, including other programs and accountability provisions.


 
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