The Governor unveiled his $3.6 billion transportation plan early Thursday afternoon. Legislative language has not yet been released, nor is it clear if/when passage in the Legislature will occur in its current form. The Governor’s transportation funding proposal would be split evenly between the State and local transportation systems, with each receiving approximately $1.8 billion.
For the State transportation system, monies would be earmarked to provide $1.6 billion annually for state highway improvements and $200 million for trade corridors. The local system would receive $1.15 billion annually to address maintenance needs of local streets and roads, $400 million annually in support of transit systems, and $250 million annually for the Local Partnership Program. To finance the Governor’s transportation plan, a number of funding sources would be tapped. They include: directing $500 million from the AB 32 Cap-and-Trade Program, $100 million from reforms at the State Department of Transportation, $500 million associated with adjusting the gas tax for inflation once-every-five-years, $500 million from an increase in diesel excise tax, and $2 billion from a new Highway User Fee assessed through a $65 charge per vehicle (including hybrid and electric). Additionally, the package proposes to accelerate $879 million in transportation loan repayments using Proposition 2 debt funds to support Transit and Intercity Rail, Trade Corridors, Local Traffic Congestion Relief, and State Highways.