TPG Online Daily

State Slashing Transportation Funding

SCCRTC Urges Legislature to Address Funding Shortfall Immediately

SCCRTC_traffic Transportation Funding Times Publishing Group Inc tpgonlinedaily.comThe Santa Cruz County Regional Transportation Commission (SCCRTC) has learned that the state will be rescinding $754 million previously approved for transportation projects statewide. The RTC board is urging the California Legislature and Governor Brown to immediately address the funding shortfall and asking the California Transportation Commission (CTC) to minimize impacts on projects in Santa Cruz County. The RTC is responsible for delivering a full range of safe, convenient, reliable, and efficient transportation choices for Santa Cruz County.

Because of a recently lowered forecast of state revenues, no State Transportation Improvement Program (STIP) funding is available for new projects over the next five years. The California Transportation Commission (CTC) will instead slash $754 million previously approved for critical transportation improvements. CTC Chair Lucy Dunn stated, “What this means is that almost every county in California that relies on this source of funding for projects that improve traffic and air quality will have to cut or delay projects indefinitely. The effect of this reduction on the state’s transportation system will be nothing short of catastrophic.”

Due to the continuing reduction in oil prices, gas and diesel tax revenues available to maintain local roads to support public transportation, and to build new infrastructure projects have plummeted. Bicycle, pedestrian, highway, and local roadway preservation projects previously approved for State Transportation Improvement Program (STIP) funds by the Santa Cruz County Regional Transportation Commission (SCCRTC) are at risk. The State Transportation Improvement Program (STIP) currently includes $25 million for important projects in the County that have been in development for many years.

The decrease in gas tax revenues, compounded with the state’s decision to divert transportation revenues to repay General Obligation bond debt, and increases in fuel economy have left transportation agencies at all levels facing painful choices. RTC Executive Director George Dondero noted, “The scale of this funding crisis is unprecedented.”


Projects at risk of losing funds in Santa Cruz County include:

Due the drop in the price of gasoline, the California Board of Equalization decreased the State gasoline tax from 18 cents per gallon to 12 cents on July 1, 2015 and is expected to reduce the tax further to 10 cents in 2016. This, plus the state’s decision to divert transportation revenues to repay General Obligation bond debt, is causing the massive revenue shortfall of $754 million. RTC Commissioner and Santa Cruz County Supervisor John Leopold noted, “This situation points out the need for our own funding for transportation projects in Santa Cruz County. The State is an unreliable source of funds.”

In recognition that state revenues are highly unreliable and will not generate sufficient revenues for all of the transportation needs in Santa Cruz County, the Regional Transportation Commission (RTC) is working diligently with the community to place a local measure on the November 2016 ballot to raise funds in order to address our transportation needs. Eighty-four percent of Californian’s live in counties where these types of local “self-help” tax measures are already in place.

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The Santa Cruz County Regional Transportation Commission (RTC) is responsible for delivering a full range of safe, convenient, reliable, and efficient transportation choices for the community. With a focus on long-term sustainability, the RTC plans, funds, and implements transportation projects and services.

 


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