ARTICLE
If you just returned from your spring break this past week, you probably were awakened by echoing voices from our state capitol saying, ‘we did it, we did it.’ After more than 27 years, Governor Brown and the California Legislature have passed legislation to raise the largest gas tax in our state history. The $52 billion tax will provide additional funding sources to address our state highways, county roads and city streets. As you recall Santa Cruz County voters last November approved a 30-year, $500 million tax measure for local transportation and road improvements. That vote made the county a “self-help” county, eligible for matching state transportation improvement funds… if and only if the state coffers would have a dedicated funding source for transportation improvements. For years, the state legislature and the Governor(s) both Democrats and Republicans would raid the transportation fund to cover state obligations such as education, health and human services and other programs that were tapped out because of our lingering up-and-down economy. Governor Brown and the Democrats choose 2017 as the year to make this vote reality. Understanding that in all likelihood placing a tax measure of this magnitude on the state ballot would never receive 2/3 support statewide. Last Thursday, April 6, under a pre-determined and self-imposed deadline set by the Governor, it happened. How it rolled out is nothing short of understanding mysterious ways the Democratic controlled Legislature pulled off the feat — albeit needing a couple of Republican votes to get the magical 2/3 super majority and a couple of backroom deals. They say the art of making legislation is like ‘making sausage.’ This deal was certainly sausage making at its best. SB 1 was authored by Senator Jim Beall, D-San Jose, who is chair of the Senate Committee on Transportation and Housing, co-championed this legislation with his counterpart in the Assembly. AB 1 was the blue print legislation by Assembly member Jim Frazier, D - Elk Grove. While the Senate and Assembly spent the past two years fighting for ownership of the transportation bill, it took Governor Brown’s bold and aggressive leadership to push aside the differences and produce the changes in the legislation during the hectic hours set forth by his own deadline. It took a couple of Republicans to abandon their party’s opposition. Senator Anthony Cannela, R- Merced was granted one magic wish of a $500 million investment for his district to connect his central valley communities to the job centers in the Bay Area via the extension of the Altamount Corridor rail line. Another legislator in the south LA County and Riverside County was also promised some ‘extra perks’ to help those constituents. Here is what SB 1 will do to our pocketbook: > SB 1 will raise the base excise tax on gasoline by 12 cents per gallon, bringing it to 30 cents. Another variable excise tax will be set at 17 cents. > Diesel fuel and biodiesel will increase the state excise tax 20 cents per gallon from 16 cents to 36 cents a gallon. A diesel-only sales tax which is charged in addition to the state and local sales tax rates, will increase from 1.75 percent to 5.75 percent, going up four percentage points. > Electric car owners will pay a $100 annual fee, after 2020, and only on new electric vehicles. > The package also creates an annual vehicle licensing fee ranging from $25 for cars valued at under $5,000, to $175 for cars worth $60,000 or more ranging from $25 for cars valued at under $5,000, to $175 for cars worth $60,000 or more Based on recent reports from our county and city public works directors, here is what is in on the table for Santa Cruz County via SB 1 funds (annually): > The County will get $6 million > Santa Cruz - $1.48 million > Watsonville - $1.21 million > Scotts Valley - $278,000 > Capitola - $232,000 You can read a variety of story lines on the legislative expose below. To be fair, many Californians support the need to increase the gas tax as the best funding alternative to address the poor conditions of transportation system. In Santa Cruz County alone, we are looking at nearly $80 million in road repairs to address the 2017 storms. While others around the State, mainly Republicans and California Farming Groups, believe there were other options such as those embedded in AB 96 authored by Assemblymember Vince Fong, R- Bakersfield, which would have used existing funding including revenues attributable to the sales and use tax on motor vehicles among other miscellaneous State Highway Account revenues. Any Republican sponsored alternative would never see the light of day in the Democratic controlled state legislature no matter how much merit is in their proposal. For now the votes are in and the gas tax increase will be with us for the next decade. Our focus is to ensure that our hard earned tax dollars are put to work soon. Story lines on the legislative expose below: Editorial, April 9, 2017: Brown uses political wiles to deliver on road tax Gov.browns-crumbling-road-show-legislative-circus SJ Mercury News - Vote today on SB 1 SF Chronicle on SB 1 Fresno Bee Opinion on SB 1 California Farming Groups oppose SB 1 - LA Times
If you just returned from your spring break this past week, you probably were awakened by echoing voices from our state capitol saying, ‘we did it, we did it.’ After more than 27 years, Governor Brown and the California Legislature have passed legislation to raise the largest gas tax in our state history. The $52 billion tax will provide additional funding sources to address our state highways, county roads and city streets.
As you recall Santa Cruz County voters last November approved a 30-year, $500 million tax measure for local transportation and road improvements. That vote made the county a “self-help” county, eligible for matching state transportation improvement funds… if and only if the state coffers would have a dedicated funding source for transportation improvements. For years, the state legislature and the Governor(s) both Democrats and Republicans would raid the transportation fund to cover state obligations such as education, health and human services and other programs that were tapped out because of our lingering up-and-down economy. Governor Brown and the Democrats choose 2017 as the year to make this vote reality. Understanding that in all likelihood placing a tax measure of this magnitude on the state ballot would never receive 2/3 support statewide.
Last Thursday, April 6, under a pre-determined and self-imposed deadline set by the Governor, it happened. How it rolled out is nothing short of understanding mysterious ways the Democratic controlled Legislature pulled off the feat — albeit needing a couple of Republican votes to get the magical 2/3 super majority and a couple of backroom deals. They say the art of making legislation is like ‘making sausage.’ This deal was certainly sausage making at its best.
SB 1 was authored by Senator Jim Beall, D-San Jose, who is chair of the Senate Committee on Transportation and Housing, co-championed this legislation with his counterpart in the Assembly. AB 1 was the blue print legislation by Assembly member Jim Frazier, D - Elk Grove. While the Senate and Assembly spent the past two years fighting for ownership of the transportation bill, it took Governor Brown’s bold and aggressive leadership to push aside the differences and produce the changes in the legislation during the hectic hours set forth by his own deadline. It took a couple of Republicans to abandon their party’s opposition. Senator Anthony Cannela, R- Merced was granted one magic wish of a $500 million investment for his district to connect his central valley communities to the job centers in the Bay Area via the extension of the Altamount Corridor rail line. Another legislator in the south LA County and Riverside County was also promised some ‘extra perks’ to help those constituents. Here is what SB 1 will do to our pocketbook: > SB 1 will raise the base excise tax on gasoline by 12 cents per gallon, bringing it to 30 cents. Another variable excise tax will be set at 17 cents. > Diesel fuel and biodiesel will increase the state excise tax 20 cents per gallon from 16 cents to 36 cents a gallon. A diesel-only sales tax which is charged in addition to the state and local sales tax rates, will increase from 1.75 percent to 5.75 percent, going up four percentage points. > Electric car owners will pay a $100 annual fee, after 2020, and only on new electric vehicles. > The package also creates an annual vehicle licensing fee ranging from $25 for cars valued at under $5,000, to $175 for cars worth $60,000 or more ranging from $25 for cars valued at under $5,000, to $175 for cars worth $60,000 or more Based on recent reports from our county and city public works directors, here is what is in on the table for Santa Cruz County via SB 1 funds (annually): > The County will get $6 million > Santa Cruz - $1.48 million > Watsonville - $1.21 million > Scotts Valley - $278,000 > Capitola - $232,000
You can read a variety of story lines on the legislative expose below. To be fair, many Californians support the need to increase the gas tax as the best funding alternative to address the poor conditions of transportation system. In Santa Cruz County alone, we are looking at nearly $80 million in road repairs to address the 2017 storms.
While others around the State, mainly Republicans and California Farming Groups, believe there were other options such as those embedded in AB 96 authored by Assemblymember Vince Fong, R- Bakersfield, which would have used existing funding including revenues attributable to the sales and use tax on motor vehicles among other miscellaneous State Highway Account revenues. Any Republican sponsored alternative would never see the light of day in the Democratic controlled state legislature no matter how much merit is in their proposal.
For now the votes are in and the gas tax increase will be with us for the next decade. Our focus is to ensure that our hard earned tax dollars are put to work soon.
Story lines on the legislative expose below: Editorial, April 9, 2017: Brown uses political wiles to deliver on road tax Gov.browns-crumbling-road-show-legislative-circus SJ Mercury News - Vote today on SB 1 SF Chronicle on SB 1 Fresno Bee Opinion on SB 1 California Farming Groups oppose SB 1 - LA Times