Responding to Governor Jerry Brown’s call for increased transportation revenues to help address the annual State and local transportation maintenance backlog, Senator Jim Beall (D-San Jose), Chair of the Senate Transportation and Housing Committee, unveiled Senate Bill 16, his comprehensive transportation funding proposal.  SB 16 is estimated to raise approximately $3 - $5 billion in new transportation revenues through various increases in fees and taxes on a variety of transportation funding sources.  Senator Beall’s transportation proposal seeks to increase the efficiency and effectiveness of the state and local transportation system, while helping to address the approximate annual $6 billion State and $8 billion local transportation maintenance backlog.  

The following components are included in SB 16:

  • Truck Weight Fees: phase-in a redirection of truck weight fees over 5 years ($1 billion in truck weight fees are currently being diverted to the State General Fund to pay debt service associated with Proposition 1B, the transportation funding bond approved in 2006);
  • Gas Tax: increase the gas tax by $0.10 per gallon (the current state excise tax rate is $0.36 per gallon, starting July 1, 2015 the excise tax rate will be $0.30 per gallon);
  • Diesel Gas Tax: increase the diesel excise tax by $0.12 per gallon.  Ten cents of the increase would fund the state and local transportation system, and the remaining two cents would fund the Trade Corridors Improvement Fund (TCIF) for freight mobility (the current state diesel sales tax is $0.27 per gallon);
  • Vehicle License Fee: phase in an increase to the VLF over 5 years, and direct these revenues to the State General Fund to backfill the loss of truck weight fees (the current VLF is 0.65% - the proposal would ultimately take it to 1.00%);
  • Vehicle Registration Fee: increase the VRF $35 annually (the current base VRF is $46); and,
  • Zero Emission Vehicles: assess a $100 VRF in addition to the proposed $35 increase in the VRF on all zero emission vehicles, which are currently not paying into the state and local transportation system.

These new transportation revenues (with the exception of the VLF increase) are proposed to be split evenly between the State and local governments, with 5 percent off the top reserved as a set-aside for Self-Help Counties – those jurisdictions that have enacted local revenue sources for transportation.  The remaining 47.5 percent local government share would be divided equally between cities and counties for local streets and roads.  The State share of the revenues would be directed to the State Highway Operation and Protection Program (SHOPP), which rural communities tend to benefit from as segments of state highways are often the main thoroughfare within their jurisdiction.