San Luis Obispo County loses $45.1M in state transportation funds
Cut represents largest reduction in over 20 years
–The California Transportation Commission, or CTC, last week took final action to cut $45.1 million in transportation funding for San Luis Obispo County. Multiple projects will be affected due in large part to the steady loss of gas tax revenue over the past two years. This cut in funding represents the largest transportation funding reduction at the state level in over 20 years. The cuts and delays are reflected in the 2016 State Transportation Improvement Program, or STIP, adopted biannually by the transportation commission.
“This cut of $45.1 M in funding to our region is on top of the $15 million in cuts and delays from prior STIP reductions late last year,” said San Luis Obispo Council of Governments Executive Director Ron De Carli. “This is further proof that state transportation funding cannot be relied on to solve our local transportation needs.”
Immediate cuts to previously programmed projects in the region include:
- $25M for the “Coast Daylight” Track and Signal Project (these Proposition 1B funds, although not STIP, were taken to backfill a STIP funded project outside the region). This project was to extend the SLO train service up to the San Francisco Bay Area.
- $19M for right-of-way and design work where Highway 41 and Highway 46 meet in eastern SLO County, otherwise known as the Wye Interchange.
- $1.1M on engineering and design work for future improvements at Highway 46 West and U.S. 101 interchange.
Additionally, the following projects and funds were further delayed:
- 4-year delay in accessing Brisco Road Interchange improvement funds, with no cost escalation provided by the state.
- No access to region’s $7M in reserve or saved funds that were originally set aside in the 2013/14 fiscal year for future projects and will now potentially be available in fiscal year 2022/23.
The CTC is required by law to estimate the amount of funds projected to be available over the five-year STIP period. The excise tax in 2010 was set at 17.3 cents per gallon and is adjusted annually by the State Board of Equalization based on fuel prices. On July 1, 2016, the tax will be reduced to 9.8 cents from the current 12 cents. Based on that reduction, the CTC anticipates a $1.5 billion funding shortfall for project commitments previously made for fiscal years 2016-17 through 2018-19, leading to the project funding cuts and delays included in the 2016 STIP adopted today.
It is estimated that every $1 billion in highway and transit investment supports 13,000 jobs. Each penny reduction in the gas tax decreases revenue to fund state and local roads by about $140 million per year.
For more information, contact SLOCOG representative Stephanie Hicks at (805) 781-4462 or email shicks@slocog.org.
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