Here’s how SB 1 revenues will be put to work for California

Screen Shot 2017-05-04 at 10.21.45 AM

Now that Gov. Jerry Brown has signed Senate Bill 1 (SB 1) into law, California will have an estimated $52 billion more to help cover the state’s transportation needs for the next decade.

SB 1, the largest road-funding plan in California in more than a quarter century, sets ambitious goals. By the end of 2027, it says least 98 percent of state highway pavement should be in good or fair condition, at least 90 percent of culverts should be in good or fair condition and at least 500 bridges must be fixed.

How is the money raised? The money comes largely from a 12-cent increase in the base gasoline excise tax and a new transportation improvement fee based on vehicle value. Where will the money go? The bulk of the revenue raised will go to various state and local road programs, as well as public transit, goods movement and traffic congestion.

Here’s how SB 1 revenues will be put to work for the entire state:

Road Maintenance and Rehabilitation Program – $3.24 billion a year

Off the top, the program allocates several hundred million dollars to various endeavors:

  • $400 million to maintain and repair state bridges and culverts
    • $200 million for Sacramento and 23 other counties with local transportation taxes
    • $100 million to increase the number of trips by bike and on foot
    • $25 million for the freeway service patrol program
    • $25 million for sustainable communities planning grants to local governments
    • $7 million total for transportation-related research at UC and CSU
    • $5 million in workforce development grants to local agencies

Of the roughly $2.48 billion remaining, half would go to Caltrans for state highway maintenance and rehabilitation. The other half would go to cities and counties for road maintenance and repair projects and railroad grade separations.

State highways – $1.49 billion

Local streets and roads – $1.48 billion

Public transit – $700 million: For local bus and light-rail systems, and new equipment and other capital expenses.

Trade – $365 million: To improve movement of goods from the state’s large ports and other trade facilities.

Traffic – $250 million: Congested Corridors Program is intended to reduce traffic on California’s most heavily traveled roads.

Parks, boats: revenue from gas tax increase purchases for boats and other off-highway vehicles – to be used for state parks, boating programs, off-highway vehicle parks and other services.

SB 1 has the potential to support nearly 550,000 jobs in construction, trades, and supplies. Many of the jobs will provide a middle-class salary and medical benefits. In addition, the bill requires the projects funded through it must engage in pre-apprenticeship programs and include low-income and disadvantaged individuals.

Source: Sacramento Bee