March 31, 2017
California Gov. Jerry Brown and legislative leaders proposed raising gas taxes and vehicle fees as a way to generate an annual average of $5.2 billion. The money would be used for a $130-billion backlog of infrastructure repairs, expansion and operation of mass transit, as well as bicycle and pedestrian projects.
The proposed, phased-in revenue sources include a 12-cent-per-gallon increase in current gas excise taxes. California has not approved an increase in the base excise gas tax for 23 years.
Revenue would also be generated by changing calculation methodology, annual inflation adjustments, as well as a new annual vehicle fee.
The pay-as-you-go tax proposal, which requires approval by two-thirds of both houses of Legislature, is viewed as a way to avoid saddling future generations with debt. Opponents believe tapping into the state general fund, which has risen by $36 billion during the last six years, is a better option.
For comments, questions or concerns, please contact Dennis Kaiser