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SB1 - The Road Repair and Recovery Act
Posted on 09/24/2018

 

Why Did the State of California Pass SB1?

A 2016 California Statewide Local Streets and Roads Needs Assessment provided a critical analysis on the deteriorating condition of local transportation networks and funding needs. The Assessment determined that cities and counties need approximately $2 billion in additional funding per year just to maintain current pavement conditions.

In an effort to address the statewide need for additional funding, the State Legislature passed by a 2/3rds majority SB1 known as the Road Repair and Accountability Act of 2017. This legislation along with several other implementation bills, adjusted gas taxes and car registration fees to generate $52 billion over the next 10 years for transportation related infrastructure improvements. Of the $52 billion, $15 billion is directly allocated to cities.  As can be seen on the graph below produced by Michael Coleman from  CaliforniaCityFinance.com the new rate for the gasoline excise tax provides the same purchasing power that existed in the early 1990s. 

SB1 graph

 

What Does SB1 do for San Ramon?

San Ramon is estimated to receive $1.3 million in SB1 Local Return funding in FY 2018-19 and an additional $20 million in funding over the next eight fiscal years.  The cumulative total impact of SB1 for San Ramon is $23.4 million.  SB1 provides  about 20 – 25% of the money that is used in San Ramon to repave streets.

 What is Proposition 6 in November of 2018?

The November 2018 ballot will include Proposition 6 – Voter Approval for Future Gas and Vehicle Taxes and 2017 Tax Repeal Initiative. If passed by voters in November, Proposition 6 will eliminate the SB1 funding dedicated to transportation infrastructure improvements including the local return received by San Ramon.

What is the Fiscal Impact if Proposition 6 is Approved?

The passage of Proposition 6 will eliminate the new taxes from SB1.  The impact for tax payers will be a reduction in the per gallon excise tax on gasoline, the reduction it the increase in diesel tax, and a reduction of the additional registration fees adopted by SB1.

The loss of funding from the adoption of SB1 will be seen on two local levels by San Ramon residents.  The Contra Costa Transit Authority estimates their loss at approximately $406.4 million for Capital Projects if SB1 is overturned and in  San Ramon, the City will lose an estimated $20 million in transportation funding over the next eight years.