Thread: California Legislature votes to raise gas taxes for road repairs and transit

California Legislature votes to raise gas taxes, vehicle fees by $5.2 billion a year for road repairs and transit

Patrick McGreevy and Melanie Mason Contact Reporters


After a week of fierce debate between opposing interests, the state Legislature on Thursday approved a plan to raise gas taxes and vehicle fees by $5.2 billion a year to pay for the repair of California’s pothole-ridden, decaying system of roads, highways and bridges.

The bill squeaked through the Senate on a 27-11 vote and cleared the Assembly with 54 votes, the bare minimum required in both houses.

The measure sparked suspenseful wrangling in the waning hours of Thursday, with Assembly Democrats initially three votes short of securing the two-thirds threshold needed to approve a new tax.

Ultimately, all but one Assembly Democrat, Assemblyman Rudy Salas (D-Bakersfield), backed the bill.

The plan was forcefully pushed by Gov. Jerry Brown as a necessary response to 23 years without a gas tax increase, which has resulted in a backlog of $130 billion in repair and replacement projects throughout the state.


What Californians need to know about the state’s $52 -billion transportation plan

"The Democratic Party is the party of doing things, and tonight we did something to fix the roads of California,” Brown said after the vote.

State Sen. Jim Beall (D-San Jose) said his bill will boost the economy and fix a crumbling road system that is unsafe.

"If we are able to have better maintained roads, we could prevent accidents and deaths and help have a better outcome in terms of traffic congestion," Beall said during the two-hour floor debate.

Senate President Pro Tem Kevin de León (D-Los Angeles), who negotiated the package with Brown and other Senate and Assembly leaders, said the state’s roads have suffered from decades of neglect and must be addressed.

“Sooner or later, you have to pay that bill,” he said. “And let's do it now, and let's do it pay as you go.”

Brown and the legislative leaders set a self-imposed deadline for action on the bill by Thursday before the Legislature’s spring recess.

Democratic Sen. Steve Glazer of Orinda voted against the bill, saying his constituents were against higher taxes as proposed by a 2-1 margin. But Brown and De León persuaded Republican Sen. Anthony Cannella of Ceres to vote in favor of the measure, reaching the two-thirds vote needed for passage.

The governor and legislative leaders ended up giving nearly $1 billion to specific transportation projects in the districts of legislators who had been on the fence before voting for Senate Bill 1. Brown and De León agreed to provide $500 million for projects in Cannella’s district, including the extension of a commuter rail line from the Bay Area to Merced.

“At the end of the day I asked for certain things and they delivered them, so I needed to vote for it,” Cannella told reporters afterward.

Cannella described the conversations with his fellow Republicans as “very tense.”

Assemblyman Adam Gray (D-Merced), whose district also benefits from the funds, praised the bill on the floor as a "package that provides new money so that the state can keep its commitment to local communities that need potholes filled, that needs roads built and maintained."

Senate Republican leader Jean Fuller of Bakersfield criticized the Democrats for providing nearly $1 billion to districts as sweeteners to win votes.

“I think it’s a very bad precedent,” Fuller said. “It just encourages people to vote for things for the wrong reasons.”

The other Republicans opposed the tax increase, saying the money should instead be taken from a general fund that has swollen by $36 billion in recent years. They also called for diverting non-bond money from Brown’s proposed high-speed train project.

Sen. Jeff Stone (R-Temecula) said the tax hikes will hurt small businesses and low-income families, who he said would have to choose between buying gas or food.

“The state Senate tonight passed yet another tax on hardworking Californians because we continue to fail the people by wasting money on programs we can't afford,” Stone said after the vote.

Final details were unveiled last week for the legislation, which will raise the base excise tax on gasoline by 12 cents per gallon, bringing it to 30 cents. Another variable excise tax will be set at 17 cents.

The excise tax on diesel fuel will jump 20 cents per gallon and the sales tax on diesel will go up four percentage points. Electric car owners will pay a $100 annual fee.

The package also creates an annual vehicle fee ranging from $25 for cars valued at under $5,000, to $175 for cars worth $60,000 or more.
About $34 billion of the first $52 billion raised will go to repairing roads, bridges, highways and culverts, with most of the money split 50-50 between state and local projects.

An additional $7 billion over the first decade will go to mass transit projects. Other money will fund improvements to trade corridors, including the roads serving the ports of Los Angeles and Long Beach, and will go toward reducing congestion on the most clogged commuter routes.

Updates from Sacramento »

The bill was opposed by several agricultural industry groups, including the Western Growers’ Assn. and the California Farm Bureau Federation, whose representatives worried that the additional costs of fuel will be a difficult financial burden for farmers.

Several environmental groups, including the Coalition for Clean Air, objected to a provision of the bill that they said ties the hands of air quality regulators who might want to adopt new rules to provide for cleaner operations of existing trucks.

The California Chamber of Commerce, cities, counties and labor groups supported the measure.

The Senate also approved a measure for the June 2018 ballot that would prohibit borrowing the new money for non-transportation programs.

The arm-twisting by the governor and Democratic leaders began in earnest Wednesday afternoon and continued through the day Thursday.

The deal to spend $500 million for transit and road construction in the northern Central Valley was struck at the governor’s mansion late Wednesday night and other negotiations continued past dawn. Later, the governor's office agreed to pump $427 million into the Riverside districts of Sen. Richard Roth and Assemblywoman Sabrina Cervantes, both Democrats and holdouts whose votes were crucial to securing passage.

Extra effort was put into wooing Cervantes, whose defeat of an incumbent Republican last year makes her a prime target for the GOP to unseat in 2018. Mid-afternoon, Cervantes huddled with De León, Assembly Speaker Anthony Rendon (D-Paramount) and Nancy McFadden, the governor's top aide.

Also present was Assemblyman Eduardo Garcia (D-Coachella), who has deep ties to Cervantes. Her father, Greg Cervantes, a former mayor of Coachella, was a political mentor to Garcia.

Cervantes was absent from the Assembly floor for most of the afternoon, while lawmakers took up bills unrelated to transportation.
The scrounging for votes was complicated by the sudden absence of another member, Assemblywoman Sharon Quirk-Silva (D-Fullerton), who went to the emergency room after suffering from severe weakness and nausea.

By the time the Assembly finally took up the measure about 8:30 p.m., Assemblyman Jim Frazier (D-Oakley) alluded to the rocky path the transportation package had to travel.

"Members,” Frazier said, “it's been a long, crumbling road to get where we are today."

http://www.latimes.com/politics/la-p...406-story.html

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California would increase fuel taxes under $52 billion road repair plan

And who will get the jobs? Not to worry, they are probably sneaking across our borders even as we speak. Or already safe and snug here in California, aspiring to be the sanctuary state.

Republican Backed Jerry Brown’s Gas Tax for $400 Million Pork Project

It would seem gas tax and vehicle permits would be the best way to raise monies to build roads. If people are going to use them let them pay for it.

It's actually a smart time to do it while gas prices are low.

Governor Brown Signs Landmark Transportation Funding Package

By Office of the Governor -
April 28, 2017, 12:41:48 PM

SACRAMENTO April 28, 2017 – Moving to fill potholes, smooth thousands of miles of pavement, repair bridges and strengthen public transportation, Governor Edmund G. Brown Jr. today signed a package of legislation to improve transportation and create jobs in communities across California.

“Safe and smooth roads make California a better place to live and strengthen our economy,” said Governor Brown. “This legislation will put thousands of people to work.”

“While Washington can barely get its act together, in California we stepped up to address one of the most pressing concerns facing our residents. This plan is fiscally responsible and will improve the quality of life for all Californians while creating jobs. Our roads will be safer and our cities and towns will be better connected to each other – finally bringing our transportation infrastructure into the 21st century,” said Senate President pro Tempore Kevin de León.

“SB 1 will make our roads better and safer and help make commutes shorter. Supporting SB 1 required a combination of common sense, political courage, and concern for the Californians who drive on our roads and bridges. Now we owe it to the people of California to perform the oversight and do the due diligence that will ensure the transportation projects SB 1 funds are completed in the timely and efficient manner our constituents deserve,” said Assembly Speaker Anthony Rendon.

“Today is the culmination of over two years of work that I’ve devoted to SB 1. It was never destined to be an easy piece of legislation but the work resulted in the first major investment in California’s transportation infrastructure in 23 years,” said Senator Jim Beall.

“For too long we have neglected our state and local transportation needs. Our roads are falling apart and our bridges are in desperate need of repair. After two years of visiting every area of the state, I have heard people’s concerns about commuting to work, running errands or just getting their kids to soccer practice.

Transportation is integral to our quality of life and SB 1 is the comprehensive funding package that will help repair our state highways and local streets and roads, while also expanding our travel options with funding for public transit. With Governor Brown’s signature on SB 1 we can finally improve California’s transportation infrastructure,” said Assemblymember Jim Frazier.

SB 1, the Road Repair and Accountability Act of 2017, co-authored by Senator Jim Beall (D-San Jose) and Assemblymember Jim L. Frazier Jr. (D-Discovery Bay), is backed by a broad coalition of supporters and 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.

State and legislative leaders joined city and county officials and local and statewide business, labor and transportation leaders in Riverside, Concord, Fresno, Bakersfield, San Diego, Los Angeles and Sacramento to build support for the landmark transportation investment package and Governor Brown testified at Senate and Assembly hearings on the legislation.

“In contrast to the gridlock in Washington D.C., California has taken responsibility to address its crumbling infrastructure. SB 1 will not only repair our highways and roads, but will also address the over 500 bridges in California currently requiring major repair, including the nearly 400 that are considered structurally deficient. This will drive our economy, create jobs, while decreasing traffic delays and providing for a smoother commute.

Governor Brown, Assembly Speaker Rendon, Senate Pro Tem De León and the vast majority of Legislators have shown leadership in improving the quality of life for all residents,” said State Building and Construction Trades Council, AFL-CIO President Robbie Hunter.

“Fixing our roads and improving transportation in the state is critical to California’s economy and our job climate. SB 1 enhances the long standing user pay program that provides the long term funding source necessary to keep people and goods moving in our state,” said California Chamber of Commerce President and CEO Allan Zaremberg.

“California cities appreciate the Governor’s signature on SB 1 today. Now our cities can get to work repairing and maintaining our streets and roads.

These investments will also reduce car repair bills for our residents and improve our transportation system that is so vital to our economy and quality of life,” said League of California Cities President JoAnne Mounce.

“This landmark legislation offers counties real hope to catch up on a significant backlog of deferred maintenance. From my home county of Alameda to rural counties like Alpine, we’re finally going to be able to start fixing potholes, improving pavement and making sure our bridges are structurally sound. We thank Governor Brown, Senators De León and Beall, Speaker Rendon and Assemblyman Frazier for their leadership on this bill,” said California State Association of Counties President Keith Carson.

“SB 1 is so much more than just a roads bill. The bill also provides an historic level of stable and permanent funding for public transit and active transportation projects, assuring California can meet its mobility goals while achieving important environmental objectives,” said California State Transportation Agency Secretary Brian Kelly.

“This bill clearly demonstrates California’s commitment to clean, sustainable transportation, and the role that public transit plays in that vision. While California’s transportation infrastructure needs are many, this proposal acknowledges the importance of public transit in achieving the 21st century transportation network that Californians need and deserve. We expect these new investments to lead to cleaner transit vehicle fleets, and reduced greenhouse gas emissions and other pollutants, as Californians will be offered more attractive mobility options,” said California Transit Association Executive Committee Chair Michael Wiley.

“The benefits of SB 1 go well beyond desperately needed repairs for our streets and roads by funding important sustainable improvements to our transportation system for walking and cycling as well — good for our health, our environment, and our economy,” said Transportation California Executive Director Roger Dickinson.

“This legislation was a once-in-a-generation opportunity to invest in the future of California’s quality of life and economic growth. SB 1 creates a responsible and dedicated source of revenue for decades to come by including voter-approved constitutional protections. We thank Governor Brown and the Legislature for taking this issue head-on and approving transformational legislation that will create hundreds of thousands of good-paying jobs, increase safety and improve commerce,” said California Alliance For Jobs Executive Director Michael Quigley.

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.

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, SCA 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 Governor has also signed the following bills:

• SB 131 by the Committee on Budget and Fiscal Review – State public employment: memorandum of understanding: approval
• SB 132 by the Committee on Budget and Fiscal Review – Budget Act of 2016
• SB 496 by Senator Anthony Cannella (R-Ceres) – Indemnity: design professionals

For full text of the bills, visit: http://leginfo.legislature.ca.gov

https://yubanet.com/california/gover...nding-package/

Gas-tax repeal? California lawmaker launches a ballot initiative

Trump Plans to Shift Infrastructure Funding to Cities, States and Business

BRIEF
CA allocates $328M to fund 88 transportation projects

By Kim Slowey
• May 24, 2017

Dive Brief:

• The California Transportation Commission has given the green light to a $328 million program of state infrastructure improvements, according to Equipment World.
• The list of 88 projects includes nearly $36 million for biking and pedestrian initiatives and $234 million for "fix-it-first" highway repairs and upgrades. Also part of the spending program are two rail projects, capital improvements along the state highway system and traffic congestion programs.
• State officials said more transportation spending programs like this are on the horizon because of California Gov. Jerry Brown's 10-year, $52 billion transportation funding bill.

Dive Insight:

In April, California legislators approved a 12-cent-per-gallon increase to the state gas tax and additional vehicle registration fees to pay for the massive infrastructure spending initiative.

The state's backlog of highway and bridge repairs total about $130 billion. According to the American Society of Civil Engineers, approximately 50% of the state's roads need improvements.

Earlier this month, Indiana officials announced that they were also raising the state's gas tax by 10 cents per gallon to help pay for a seven-year, $5 billion infrastructure program. The increase will cost residents an average of $63 a year, but lawmakers said public feedback indicates that taxpayers are willing to pay slightly more for gas in exchange for better roads.

While some states are looking to taxpayers to fund infrastructure programs, Utah transportation officials announced this week that they were launching a $1 billion transportation program, courtesy of the state legislature. State lawmakers will borrow the money over a four-year period, and Utah Transportation Commission officials said the windfall will allow them to complete a handful of major projects in a shorter timeframe.

Bonds are also a way to finance infrastructure projects, and Maine officials cleared a major hurdle this month in advance of a bond issue that will pay for this summer's bridge and road work. Maine Gov. Paul LePage disagreed with the process that the state treasurer used to select the bonding agent, arguing that the requirements cut out many Maine-based businesses. It looked like, in protest, LePage would drag his feet on setting a bond issue amount for the June sale, which would have jeopardized about $600 million in projects scheduled for this summer. However, the governor and Hayes worked out a compromise, no doubt under pressure from state infrastructure contractors who depend on seasonal work to survive the slow winter months.

http://www.constructiondive.com/news...ojects/443430/