Sponsored message
Logged in as
Audience-funded nonprofit news
radio tower icon laist logo
Next Up:
0:00
0:00
Subscribe
  • Listen Now Playing Listen

This archival content was originally written for and published on KPCC.org. Keep in mind that links and images may no longer work — and references may be outdated.

KPCC Archive

Some businesses back higher gas taxes in California

Crude oil prices are way down, but gas prices at the pump have barely budged.
Newport Beach Chevron gas station prices on December 21, 2012
(
Ed Joyce/KPCC
)

One year ago, Congress defunded public media. Now that we're 100% community funded, please become a sustaining member or increase your existing membership today.

Listen 0:54
Some businesses back higher gas taxes in California

The governor’s $3.6 billion transportation spending package to fund repairs of California’s dilapidated roads failed to pass this week, but it may get another chance during a continuing special session of the legislature.

When it, or a successor compromise plan, does return, it's likely to have the continuing support of prominent business groups, according to Kathy Fairbanks of Fix Our Roads, a coalition of business, local government and unions. Fix Our Roads had earlier supported a $6 billion plan.

Businesses aren’t known for their support of tax increases, but the California and Greater Los Angeles Area chambers of commerce are among the groups rooting for more revenue to help Caltrans catch up on some $59 billion worth of deferred maintenance to roads and bridges.

In return, the Fix Our Roads coalition wants California to change how it funds transportation, says Orange County Business Council CEO Lucy Dunn. For one, businesses want transportation taxes and fees to be strictly reserved for transportation projects, she says.

Some $900 million in transportation funds was borrowed for other uses to prop up California’s recession budget several years ago, and there are calls for the money to be returned to transportation accounts.

Among the proposed changes Dunn says she wants to see is a “constitutional amendment so that the funding raised does not get diverted to other purposes.”

The bottom line for businesses, though, is that they need good roads.

“Without goods movement and people able to get to their jobs or deliver their services, the California economy suffers,” Dunn says.

Sponsored message

Californians pay 42.35 cents per gallon in state taxes and fees, plus 18.4 cents per gallon in federal gas tax. Every 1 percent in additional state gas tax would raise about $150 million, according to the state Legislative Analyst’s Office. Every percentage point added to the state vehicle registration fee would add $3 million to $3.5 million to the state budget.

One year ago, Congress voted to defund public media, eliminating a critical $1.7 million from our budget every year going forward. But they couldn’t silence us, and we’re not going anywhere. LAist is now 100% community funded and that means we’re taking our future into our own hands and turning to you to keep local reporting strong.

You come to LAist because you want independent reporting and trustworthy local information. Our nonprofit newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our communities. We are free to follow facts wherever they lead and to hold power to account without fear or favor. Our only loyalty is to our readers and listeners and our mission: to inform, engage, and strengthen Southern California’s communities.

If this story helped you, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Senior Vice President News, Editor in Chief

Make your tax-deductible donation today