The Road Repair and Accountability Act of 2017

• On April 6th 2017, the California legislature passed the Road Repair and Accountability Act of 2017 (Senate Bill 1), the largest gas tax in state history. This bill was just signed into law by Governor Brown on April 28th.
• This bill will raise the base gasoline excise tax by 12 cents per gallon, will increase the diesel and biodiesel tax by 20 cents, and will impose annual vehicle licensing fees. The combination of these taxes and fees will provide the state roughly $5 billion a year in transportation funding, and $52 billion over the next 10 years.
• While the passing of Senate Bill 1 is considered a huge win for the Democrats in Sacramento, it did not come easily, as highly controversial last minute deals with hesitant Democrats and Republicans resulted in roughly $1 billion being set aside for projects in areas of Riverside and Modesto.
• With Santa Cruz County having already approved Measure D in December of 2016, which authorized a half cent sales tax that will raise an estimated $17 million per year for local transportation funding, Senate Bill 1 will offer Santa Cruz County an additional $6 million per year, making available an additional $23 million in annual funding for road repair and transportation projects in Santa Cruz County.
• In addition, in response to concerns that the new funds will not be spent solely upon transportation as intended, Senate Bill 1 contains a proposed 2018 constitutional amendment that will guarantee that all of the $5 billion a year, will be used only for transportation repair and projects.
• From Senate Bill 1, which will begin in November of 2017, the City of Santa Cruz can expect to receive $1.48 million annually, whereas Watsonville will receive $1.21 million, Scots Valley $278,000 and Capitola $232,000.

Relevance: This bill is of great relevance to California’s infrastructure and economy as a whole, and addresses recent concerns in Santa Cruz County regarding the need for greater funding for roads and transportation. While this tax increase can be criticized as an increased financial burden for Santa Cruz residents who have already approved a gas tax in November and are struggling with the extremely expensive nature of California living, one can also argue that increased funding for transportation infrastructure and projects will not only put many people to work, but will also strengthen Santa Cruz’s local economy, as safe and efficient travel is a core aspect of economic growth. Furthermore, this additional funding may also play a role in supporting the City’s energy efficiency goals, as this bill allocates funding for sustainable and energy efficient transportation, setting aside an annual $100 million to promote increased travel by walking or bicycling, as well as $25 million for sustainable communities grant applications. Furthermore, this bill will also heavily invest in strengthening public transit, an essential aspect of sustainable travel. Many also see this increase in transportation funding as highly timely, in light of one of California’s wettest winters, which caused an estimated $20 million in road damage in Santa Cruz County, forcing both the City and County to declare a state of emergency.
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To read more about the relevance of this bill please see our Chamber Newsletter for more details:
http://web.santacruzchamber.org/news/newsarticledisplay.aspx?ArticleID=1528
To see the specific details on the allocation of the projected funding please visit the following link:
http://www.sacbee.com/news/politics-government/capitol-alert/article147437054.html 
For more information please see the following links:

• http://www.kion546.com/news/santa-cruz-county/measure-d-passes-will-fund-transportation-projects/200725634
• http://www.sacbee.com/news/politics-government/capitol-alert/article143237054.html