SB 1 Repeal Effort Information

CTA Member -

 

As you know, over the past few months, there has been an effort to repeal the transportation funding package, otherwise known as SB 1. The initiative to repeal the revenue generated from SB 1 recently qualified for the November ballot. If successful it would undo the $52 billion transportation package, which would include eliminating the 20-cent diesel excise tax, the 12-cent-a-gallon increase in gas (a recent LAO report indicated the gas tax increase equates to $83 per year per person), new vehicle registration fees and the other increases.

The UC Berkeley Institute of Governmental Studies’ poll, conducted in December 2017, found that voters favored the repeal 52 to 43 percent. The other concern that is consistently raised by opponents of SB 1 is that "Sacramento, will just spend the SB 1 money elsewhere." This cannot happen. SB 1 is now constitutionally protected by Proposition 69, which was approved in May by an overwhelming 81% of the voters. However, this spending accountability will be moot if SB 1 gets repealed. 

 

At CTA we want to make sure we are informing our members the best we can regarding the effort to repeal SB 1, and what that likely would mean to the trucking industry. Prior to the passage of SB 1, a transportation trade group conducted extensive polling on what voters would favor as a way to raise transportation improvement funds. The option that polled the highest was to increase truck weight fees. This shouldn’t be a surprise. Unfortunately, the trucking industry has always been an attractive target from which to raise transportation funds. The way the ballot initiative to repeal SB 1 is written is to allow you, the voters, to approve future transportation funding proposals. What this means is, if SB 1 is repealed, there will likely be a ballot initiative to significantly increase truck weight fees, which, as I shared above, polls extremely well. In addition to increasing truck weight fees, we expect other truck-associated taxes and fees would be targeted as well.

 

Leading up to Election Day, CTA will be providing frequent updates to our members, including important news articles and other related information regarding SB 1 and the effort to repeal it. As you know, CTA supported SB 1 because of the critical provisions the Association was able to secure in the bill package. This included CTA’s Board-approved policies of No increase of weight fees, No increases in truck registrations or Vehicle License Fees. Additionally, we were able to incorporate CTA’s Board-Approved Useful Life Provision in the bill, which provides truck owners a return on their investment before CARB can approve another costly truck rule. The tradeoff for all of the above mentioned truck provisions was that SB 1 include a 20-cent-per-gallon diesel excise tax, which was approved by CTA’s Board.

 

While CTA understands the concerns from those opposed to paying higher taxes and fees, I think we can all agree that California’s roads and bridges are in dire need of repairs and maintenance. And although it may not be popular, SB 1- and the spending guarantees from Prop. 69 - is the necessary first step in improving our infrastructure.

Look for more updates from us in the months leading up to Election Day, Tuesday, November 6th and, if you have any questions please feel free to contact the CTA Government Affairs team. 

Thank you, 

Eric Sauer | Senior Vice President Government Affairs  

4148 East Commerce Way 

Sacramento, CA 95834

E: esauer@caltrux.org