FRESNO, Calif. - State transportation leaders gathered at Fresno State last week for a town hall focused on the future of California’s roads, bridges, and public infrastructure – and the growing budget gap that threatens that future.
The event, hosted by Assemblymember Lori Wilson, kicked off a statewide effort to gather public input on how California should invest in transportation over the next decade.
“Your participation in this process is crucial to its success,” Wilson, who represents District 11, said during her opening remarks. “And the success is we have a long term, sustainable solution that works for every single Californian.”
The event featured presentations from representatives of Caltrans, the California Transportation Commission, and the Legislative Analyst’s Office. Speakers broke down where funding currently comes from, how it’s being used, and what options the state is considering as fuel consumption declines.
Bigger needs, bigger costs
California’s transportation system needs an estimated $756.8 billion over the next decade. But the state is facing a projected shortfall of about $215.7 billion
“We need to figure out how to stop the near-term loss of funding due to declining fuel and we need to determine the solution to modernize how we fund transportation infrastructure,” said Laura Pennebaker, Deputy Director of Transportation Planning with the California Transportation Commission.
Among the things to figure out, Pennebaker said, is how to adapt to declining fuel tax revenue as more drivers switch to electric and hybrid vehicles.
Nearly three quarters of the state’s primary transportation revenue comes from motor vehicle fuel taxes. For gas, the state fuel tax is 79.6 cents and for diesel, 71 cents per gallon.
Transportation improvement fees are another key source of revenue that vary between $32 to $227 depending on the vehicle value. Additionally, fees from zero-emission vehicles made in 2020 or after bring in $118 each year on top of the annual registration fees.
But vehicles aren’t all that the state is thinking about in terms of transportation. Recent investments have helped add 160 miles of bike lanes and 48 miles of sidewalks across the state, officials said.
Keith Duncan, who oversees budgets at Caltrans, said the goal is to invest another $2.4 billion over the next decade and increase that pedestrian infrastructure by 59%.
Local projects in the works
Michael Navarro, the District 6 Director at Caltrans, highlighted several key projects already underway in the Central Valley.
He said a $172 million project to widen Highway 99 and upgrade the Paige Avenue interchange in Tulare is still in the design phase.
There is also a $14 million transformation project ongoing in the city of Madera’s downtown corridor. Under that project, residents will see new bike paths, roundabouts, and bus shelters.
Over 200 projects totaling $2.5 billion have received funding from SB1, a 2017 state law that aimed to improve the state’s transportation infrastructure. Nearly all of those projects touch on rural or disadvantaged communities. Under SB1, Caltrans has secured $580 million altogether in discretionary grants.
“We are tackling multiple assets in terms of safety,” Navarro said.
Fixing what is already built
Allen Lao, District 10 Asset Integrator from Caltrans, said some state transportation projects also include making renovations to existing infrastructure.
One of those projects is a $112 million upgrade to Interstate 5 that focuses on fixing aging concrete slabs between northern Stockton and the Sacramento County line.
The upgrades are especially important as the increase of truck traffic continues, Lao said.
Another key renovation project is the $6.4 million Old River Bridge Project in the Delta region. The bridge, one of 17 older movable structures in the area, will receive both mechanical and electrical upgrades to improve reliability and safety.
Weighing the options for future funding
Frank Jimenez, Senior Fiscal and Policy Analyst with the California Legislative Analyst’s Office said that with the ongoing projects and those needed in the future, there may be strategies to closing the state’s long-term funding gaps.
Some of those strategies, he said, include increasing fuel taxes and vehicle fees, shifting transportation costs to other fund sources, reducing or reprioritizing transportation program spending, and generating revenue from new sources like taxes on alternative fuels or road usage fees.
Each option comes with trade-offs, Jimenez said, and state leaders will need to carefully consider factors like implementation costs, equity, and long-term revenue stability.
“This is a complicated issue and this is one that the state will have to weigh all these various options and trade-offs at hand,” Jimenez said.
