As drivers across the country know, the transportation environment is getting tough from traffic congestion to worn out roads that are sometimes being repaired – making traffic worse. The state of California is going through a wave of debate over what needs to be done about it – including supporting public transit, biking, and walking options. There’s also the question of raising taxes and tolls in the future to deal with corroding road conditions. A recent study shows that a typical commuter in Los Angeles wastes 61 hours and 27 gallons of fuel each year stuck in traffic. Add bad roads to the mix and you’ve got hundreds more annually in expenses for tires, vehicle repairs, and other operating costs.
California Governor Jerry Brown has asked the new California State Transportation Agency to set up a working group of key transportation stakeholders and review policy options. Craig Scott, a transportation policy specialist at the Auto Club of Southern California, wrote about these transportation issues in Westways magazine. Here are the typical methods that states are looking at to deal with these problems….
Increase the Gasoline tax
This one probably won’t go over well politically. It already sees 39.5 cents a gallon in California state taxes, 2 cents a gallon in state underground storage fees, and 18.4 cents in federal gas taxes. Raising taxes would significantly add funds, but it generally doesn’t go over too well.
Vehicle Miles Traveled (VMT) Taxes
This one is very unlikely to see the light of day. No state has adopted a VMT tax, which is based on the number of miles driven. A lot is needed to comply and it would require a new reporting system to accurately read motorist miles.
Tolling and “Road Pricing”
This is definitely where California and many other states are headed. It raises enough funds to add lines and do road repair but not enough to meet overall state transportation targets. It’s easier these days to implement these taxes with advances made in electronic tolling.
Increase the Vehicle License Fee (VLF) or Registration Fee
California voters don’t like the idea of these fees being raised, so it would be a very tough call to make. It currently raises about $2 billion a year for the state to pay for local government services.
Sales Tax Specifically for Transportation
California voters do tend to back special sales taxes for transportation projects, usually implemented at half cent increments at the county level. Voters tend to like it since they see how the money is used and where it ends up. This could be a realistic way to accomplish transportation goals on a statewide level.
Infrastructure Bonds
Californians may support such a bond, but it does raise debt for the state and may not be enough to cover its end goals. Voters approved $20 billion in transportation bonds in 2006. How long does it take to pay that off, and would the public support taking on more of that debt soon?
