State Budget: Higher Fees Won’t Lead to Better Transportation

For those of us awaiting our tax return from the State of California, the news from Sacramento concerning yesterday’s budget compromise comes as welcome news.  For just about everyone else, the news isn’t good.  That’s especially true for anyone that has a commute that isn’t either a pedestrian or cyclist.

You’re not going to catch me either crowing or complaining about the two major transportation taxes, a near doubling of the vehicle registration fee and a twelve cent increase in the state’s gas tax.  While a raise in either of these fees are overdue, it’s galling that despite a dramatic increase in transportation costs, there will be no increase in transportation services.  In fact, the state will be cutting $536 million in transit assistance, all of it would have gone towards operations and keeping fares as low as possible. 

Combined, these two fee increases will bring in $3 billion annually.  It’s too bad that neither the Governor or legislative negotiators were willing to increase either of those fees by just a little more to protect transit costs.  The California Transit Association warns the Times what could happen to agencies under this proposal:

Jeff Wagner, a spokesman for the California Transit Assn., warned that
such a big hit could mean fare hikes and service reductions. Transit
agencies, he said, have "been cut to the bone already."

Since it’s unlikely the governor would consider increasing the vehicle license fee, Schwarzenegger made a big show of cutting the vehicle license fee from 2 percent to .65 percent in his first act as governor, it is unlikely that he will allow an increase in the vehicle license fee beyond the proposed 1.15 percent increase.  However, if the government would increase the fee to 1.40 percent, it would provide enough new revenue to avoid the cuts in transit funding.  Similarly, another half cent increase in the fuel tax would accomplish the same level of revenue generation.  Dedicate those funds to transit and all of a sudden there’s no more need to cut transit operating funds.

It looks bad for a governor who claims to be obsessed with reducing greenhouse gas to habitually cut funding to transit.  For a relatively small cost, he could avoid having to do that altogether.

(Editor’s note:  A previous version of this story placed the transit
cut at $459 million, as reported by the Los Angels Times.  This new number
comes from T4America.)

ALSO ON STREETSBLOG

The U.S. Transportation Financing Crisis: A Snapshot From the States

|
Washington transportation policymaking can often resemble an unwieldy soup of anywhere between 50 and 535 local perspectives, as lawmakers from different states and districts vie for a fixed (or even shrinking) amount of federal funding. Congress isn’t eager to raise fuel taxes to pay for transportation — but what about the states? (Photo: Pop and […]

Feuer’s Greenhouse Gas Tax Bill Passes Assembly

|
Yesterday the State Assembly passed Asm. Mike Feuer‘s A.B. 2558, the controversial piece of legislation that would allow voters to increase fees on drivers whose vehicles produce the greatest amount of pollution, despite unanimous opposition by the Republican caucus. The bill now moves to the Senate where it needs to be passed by committee and […]

GOP Budget Would Slash Transpo Spending, Entrench Oil Dependence

|
House Budget Committee Chairman Paul Ryan’s plan would slash transportation spending and prioritize highways. Photo: Christian Science Monitor. With the release of House Budget Committee Chairman Paul Ryan’s budget proposal yesterday, right wing calls for massive cuts to transportation spending are now enshrined in the GOP leadership’s fiscal plan. Ryan singled out transportation as an […]

What are (aren’t) our Senators doing about Transportation Funding

|
Yesterday, we discussed the transportation funding crisis that is looming in Washington, D.C. Today, we’ll take a quick look at what California’s representatives in the U.S. Senate are doing about this. Barbara Boxer, the Chair of the Senate’s Infrastructure and the Environment Committee, recognizes the need to raise more revenue for transportation, but doesn’t want […]
STREETSBLOG USA

Inside Obama’s Transpo Budget: “Historic Increase” in Transit Funding

|
A few more details about the Obama administration’s proposal for a new transportation bill surfaced today when the president unveiled his 2015 budget proposal. The topline numbers came out last week and look good for transit, biking, and walkability. The White House’s four-year, $302 billion surface transportation plan proposes an “historic increase” in transit funding — […]