"California Gas Tax Revenue Will Drop By $6 Billion, Threatening Roads"

"As the state battles climate change and Californians drive fewer gas-powered cars, tax revenue will drop substantially, according to a new state analysis. EV fees will make up only part of the transportation shortfall so lawmakers need new funding options."

"California’s funding from gas taxes will drop by nearly $6 billion in the next decade due to the state’s electric car rules and other climate programs, “likely resulting in a decline in highway conditions for drivers,” according to a new state analysis released today.

As California phases in major policies aimed at reducing greenhouse gas emissions — such as the mandates for zero-emission cars and trucks — consumers buy less gasoline and diesel, and consequently pay less taxes.

Those declines in tax dollars will be partially offset by the state’s road improvement fee, which drivers pay when they register their electric cars. But the Legislative Analyst’s Office stressed that overall the state will still see a $4.4 billion drop in funding, a 31% decline, over a decade, so the Legislature and governor must come up with substantial new funding sources."

Alejandro Lazo reports for CalMatters December 14, 2023.

Source: CalMatters, 12/15/2023