BILL ANALYSIS �
SJR 24
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Date of Hearing: June 9, 2014
ASSEMBLY COMMITTEE ON TRANSPORTATION
Bonnie Lowenthal, Chair
SJR 24 (DeSaulnier) - As Introduced: April 21, 2014
SENATE VOTE : 36-0
SUBJECT : Federal Highway Trust Fund
SUMMARY : Urges the President and Congress to stabilize the
federal Highway Trust Fund (HTF) by developing a long-term plan
to promote adequate revenues for transportation.
EXISTING LAW : As set forth in the federal Moving Ahead for
Progress in the 21st Century Act (MAP-21), authorizes federal
funding for transportation for Fiscal Years 2013 and 2014. The
primary source of funding for federal transportation programs is
the excise tax on motor vehicle fuel.
FISCAL EFFECT : Unknown
COMMENTS : The federal excise tax on motor vehicle fuels is an
important funding source for transportation in California. The
current rate of federal excise tax is 18.4[ for gasoline and
24.4[ for diesel fuel. These rates, last adjusted in 1993,
generate about $30 billion annually of which California receives
about $3 billion. The current federal transportation
authorization is set to expire on September 30, 2014.
The federal HTF is no longer a stable source of funding. Over
the last five years, Congress transferred over $53 billion from
the general fund to the transportation fund in order to
compensate for lagging gas tax revenues. The United States
Department of Transportation (US DOT) reports that the HTF will
become insolvent before the end of this summer.
According to the Institute on Taxation and Economic Policy, two
important developments have combined to greatly reduce the
purchasing power of the poorly designed federal gas tax.
Improvements in vehicle fuel efficiency have cut directly into
gas tax revenues by allowing drivers to travel farther distances
SJR 24
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while buying less gasoline. Meanwhile, inevitable growth in the
cost of asphalt, machinery, and other construction materials has
put additional strain on the gas tax because its rate has not
been adjusted to keep pace.
This bill urges the President and Congress to stabilize the HTF
by developing a plan that:
1)Continues an appropriate role for the federal government in
sustaining a viable national transportation system;
2)Contributes to deficit reductions and economic growth;
3)Ensures the integrity of the surface transportation program
and resists funding diversions that have been harmful to
public support.
4)Allows Congress to pass a reauthorization of the federal
highway and public transit programs before MAP-21 expires.
REGISTERED SUPPORT / OPPOSITION :
Support
Transportation California (sponsor)
Associated General Contractors
California Concrete Contractors Association
California Nevada Cement Association
California State Association of Counties
California Transportation Commission
League of California Cities
Rural County Representatives of California
United Contractors
Opposition
None on file
Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093
SJR 24
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