Tax hikes to fund road repairs
Gov. Brown’s package of tax hikes to fund road repairs is tough medicine to take, but we might just have to take it, at least in part.
We certainly can’t let California’s freeways, roads and bridges become even more run-down or unsafe. Something must be done, but it must be done in a prudent fashion.
Brown and Democratic legislative leaders have proposed $5.2 billion a year in additional gas taxes and car fees to fix the state’s lackluster roads. Over the next decade, $15 billion would go to local road repairs, and the same amount to state highway repairs, plus $4 billion for bridge and culverts, $5.5 billion to improve trade corridors and major commuting corridors, and $7.5 billion to improve local public transportation.
The proposal would increase the base excise tax on gasoline by 12 cents per gallon, from 18 cents to 30 cents. A separate price-based excise tax on gasoline would rise from 11.8 cents to 17.23 cents and would be indexed to inflation to rise in future years. A new fee on vehicles would average $48 per year, based on the value of the car. Drivers of electric cars would pay an annual $100 fee.
That’s a steep price for drivers and truckers. But, here’s the thing: It’s been 23 years since gas taxes were raised, and if the tax had been indexed to inflation, it would be higher now than the governor’s proposal will make it. Inflation and more efficient cars have meant that money for road maintenance has fallen far behind the deterioration of our roadways, and we see — and feel — the results every time we drive. The administration claims each California driver now spends about $700 a year in vehicle repairs caused by rough roads.
The package includes a constitutional amendment to be passed by voters to require that all the money is spent as promised. That’s a nod to the fact that Sacramento has for years diverted transportation tax revenue, including truck weight fees, to other purposes. This proposal includes $706 million in loan repayments from the General Fund. There would also be an inspector general to ensure that Caltrans and other agencies use the money efficiently.
Those steps are good, but we need to see another: The Legislature must put a 10-year sunset on the whole package of taxes. Any such taxes should be reviewed periodically, and quick advancements in transportation technology make it even more important in this case.