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Department of Finance Releases HUTA Estimates for Proposed FY 2019–20 Budget

January 28, 2019
The California Department of Finance (DOF) provided new revenue estimates with Gov. Gavin Newsom’s Proposed FY 2019–20 State Budget released on Jan. 10 including for transportation tax revenues.
 
Updated information is available with city and county estimated allocations of Local Streets and Roads (LSR) funds to cities and counties through the Highway Users Tax Account (HUTA) and the Road Maintenance and Rehabilitation Account (RMRA) for FY 2018–19 and FY 2019–20.
 
The estimates should be used for budgeting these funds. These figures will be updated again in May when DOF releases updated revenue estimates with the Governor’s May Budget Revision.
 
Items for cities to note include:
  • Section 2104-2107 HUTA estimates for the current FY 2018–19 year are about 1 percent lower than previously projected in May 2018. These revenues are projected to decline 0.5 percent in FY 2019–20.
  • Section 2103 Variable Tax HUTA estimates for the current FY 2018–19 year are about 6.7 percent lower than May 2018 estimates for the year. Due to a rate increase stipulated in SB 1, these revenues are projected to increase 140 percent in FY 2019–20.
  • The new RMRA revenue estimates for FY 2018-19 are 4.6 percent down from May 2018 estimates. These revenues are expected to increase in FY 2019–20 by 4.4 percent.
  • In total (HUTA, TCRF, RMRA), local streets and roads revenues to cities and counties are estimated to increase 38.3 percent in the current FY 2018–19 year over the prior year (due largely to a full year of RMRA in the current year), and by 14.9 percent in FY 2019–20 over the current year (due largely to the scheduled increase in the Section 2103 gas tax rate on July 1, 2019). 
A full report explaining all city and county formula based local streets and roads allocations from the state, along with the updated revenue estimates for each city and county is available at CaliforniaCityFinance.com.


 
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