Transit systems across the state are breathing a collective sigh of relief. The transportation funding package which passed the state legislature on April 6th will provide much needed operating funds, and in many cases, prevent service cuts facing many transit providers.
County Connection anticipates receiving approximately $2 million, which will fill the gap from lower than budgeted state and local sales tax funds.
For transit systems across California, SB 1:
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Increases the incremental sales tax on diesel fuel dedicated to the State Transit Assistance another 3.50% – generating approx. $250 million/year at first, and increased by a CPI factor over time – to be used for transit capital and operations purposes;
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Increases the incremental sales tax on diesel fuel another 0.50% – generating approx. $40 million/year at first, and increased by a CPI factor over time – and dedicates these revenues to intercity passenger rail systems and commuter rail systems; and,
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Establishes a new “Transportation Improvement Fee” under the Vehicle License Fee law (removing Article XIX restrictions) and dedicates these revenues as follows:
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Approximately $105 million/year to the STA program, for “state of good repair” types of expenditures;
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About $245 million/year to the Transit and Intercity Rail Capital Program, the competitive transit capital program overseen by the California State Transportation Agency; and,
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About $250 million/year to a new “Solutions for Congested Corridors Program” which would be available to the California Transportation Commission, for allocation to project applicants for a balanced set of transportation, environmental and community access improvements within highly congested travel corridors in California.
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For a detailed outline of transportation improvements please see the SB1 Funding Outline as presented by the California Transit Association.