Friday, January 29, 2016 The CSAC Bulletin
Transportation Commission Cuts Capital Project List

Local Transportation Funding Also on the Decline

Last week the California Transportation Commission (CTC) took action to lower its funding estimate for the State Transportation Improvement Program (STIP) due to continuing decreases in fuel tax revenues. On January 27, the Commission sent the Legislature a letter describing the worsening fiscal condition of the state transportation system and outlining projects that will be indefinitely delayed as a result of decreased revenues. The reductions in revenue prompting the CTC action last week also affect the funding available for the local street and road system, as the primary source of funding for maintaining and operating local roads is the state gasoline excise tax.

Due to low prices and changes in consumption patterns, funding for local roads is down about 25% over the last two fiscal years. CSAC is working with public works departments in every county to identify the impacts of these ongoing revenue reductions. In the coming weeks, we will continue our push for a comprehensive transportation funding package that invests at least $3 billion annually in local streets and roads. We urge counties to reach out to their legislative representatives to ensure they are aware of these ongoing revenue reductions. Counties can also adopt resolutions supporting CSAC’s priorities for new transportation funding.