Gov. Newsom Proposes $53 Billion for Infrastructure Spending

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On January 10, California Governor Gavin Newsom submitted his 2020-21 State Budget proposal to the Legislature. The $222.2 billion budget, which includes a projected $5.8 billion surplus, aims to make “responsible investments in the state’s economic future while tackling head-on persistent challenges facing the state.”

Among these proposed “responsible investments in the state’s economic future” is a sizable $53 billion investment in state infrastructure over the next five years.

The 2020 Five-Year Infrastructure Plan (the Plan) focuses on how the state’s investment in infrastructure, which underpins economic activity, can be leveraged to create a sustainable and resilient California. The majority of the proposed funding in the Plan — over $40 million, or more than 76% of the total amount — is dedicated to the state’s transportation system.

Observing that “Infrastructure and capital assets allow for the delivery of public services and the movement of goods across the state, both of which are essential components in fostering continued economic growth in California,” the budget notes that, “state and local governments should work towards a future in which infrastructure withstands changing climate conditions while continuing to provide essential services,” adding that it is “critically important to maintain and restore California’s aging road infrastructure.”

Over the next five years, according to the Plan, $22 billion will be available for new state highway repair and rehabilitation projects in the State Highway Operations and Protection Program (SHOPP). The budget states that the Road Repair and Accountability Act of 2017 (SB 1) has increased available SHOPP funding capacity by $8 billion through 2022-23.

Over this same five-year period, $3.3 billion will be available for the State Transportation

Improvement Program (STIP), which provides funding for future multi-modal transportation improvements throughout California.

The Plan also invests approximately $5 billion in public transit and rail infrastructure.

Lawmakers have until June 15 to pass the budget, which will be implemented in July at the start of the fiscal year.

The Budget Summary for Infrastructure can be found here

Source: The Office of Governor Gavin Newsome

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