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Economic Downturn Could Cost California More Than $10 Billion in Transportation Revenue

The effects of the economic downturn resulting from the public health crisis presented by Covid-19 could have long-term impacts on the ability of California to plan and build new transportation infrastructure.
May 19, 2020, 10am PDT | James Brasuell | @CasualBrasuell
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110 Freeway
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The Mineta Transportation Institute published predictions of dire consequences for transportation revenue in the state of California as a result of the Covid-19 pandemic. 

"The Impact of COVID-19 on California Transportation Revenue" reports predicts revenue to drop by $9.4 billion to $11.4 billion through 2030 depending on the pace of economic recovery.

"The study used a tested spreadsheet model and well-known data sources to project transportation revenues generated by California’s Senate Bill 1 (2017) package of taxes and fees. These are taxes on gasoline and diesel fuel, plus two annual fees levied on vehicles," according to the study's abstract.

The report suggests that licensing fees for electric vehicles could potentially make up the difference in lost gas tax revenues according to the scenarios used to generate the report's findings.


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Published on Friday, May 15, 2020 in Mineta Transportation Institute
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