The bill stipulates that 40% of the revenues from this account will be allocated to the Department of Transportation for maintaining the state highway system and 40% will be apportioned to cities and counties for local road purposes based on specific formulas. Additionally, 20% will be directed towards projects identified in the State Transportation Improvement Program aiming to reduce traffic congestion. This financial structure is contingent upon the California Transportation Commission developing suitable performance criteria and metrics for the effective expenditure of these funds, thereby ensuring accountability.
Assembly Bill No. 1866, introduced by Assembly Member Fong, aims to address transportation issues in California by creating the Traffic Relief and Road Improvement Program. This program is designed to tackle traffic congestion and the deferred maintenance of the state highway and local road systems. The bill proposes a new funding structure, consolidating various existing revenue sources, such as sales and use taxes from motor vehicles, vehicle registration fees, and diesel fuel sales taxes into a new Traffic Relief and Road Improvement Account within the State Transportation Fund. The revenue from this account is intended to be continuously appropriated for maintenance and improvement projects.
Notably, AB 1866 eliminates restrictions against certain transportation revenues by allowing funds that were traditionally obligated for other purposes to be redirected towards the Traffic Relief and Road Improvement Account. This includes significant changes such as the handling of federal emissions funds, and removing prior restrictions on contract staff, which may raise concerns regarding oversight and resource allocation efficiency. The transition to a model thought to enhance operational efficiency also mandates the Department of Transportation to produce annual savings, potentially impacting how transportation projects are executed and funded.
Furthermore, the bill establishes the California Transportation Commission as an independent oversight entity, which could change the dynamics of transportation governance within the state. By doing this, AB 1866 aims to improve the operational efficiency of transportation programs while also addressing critical infrastructure needs—a shift that supporters hope will lead to better maintenance and traffic management, though critics may point to concerns about local control and oversight through centralized funding mechanisms.