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Home > News > News Articles > 2017 > January > DOF Releases Statewide FY 2017-18 Highway Users Tax Account Estimates
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DOF Releases Statewide FY 2017-18 Highway Users Tax Account Estimates

January 18, 2017
Following Gov. Jerry Brown’s proposed FY 2017-18 Budget, the Department of Finance (DOF) released its FY 2017-18 statewide estimates of Highway Users Tax Account (HUTA) local streets and roads funding to cities and counties.
It also includes revised estimates for the current FY 2016-17. Based on these statewide estimates has computed city-by-city estimates. County estimates will follow shortly.
The California Municipal Revenue Sources Handbook contains a full explanation of the HUTA allocations. This publication is available for purchase on the League’s website.   
There are a few items of particular importance to cities including:
  • DOF estimates that current year FY 2016-17 HUTA allocations will be about 4.6 percent lower than previously estimated (May 2016).
  • DOF estimates base HUTA allocations (Streets & Highways Code Sec. 2104-2108) to grow by just 0.3 percent in FY 2017-18 over the prior year.
  • DOF estimates revenue from the Streets & Highways Code Sec. 2103 variable (price-based) rate to increase by 68.34 percent from $155.9 million in FY 2016-17 to $262.4 million in FY 2017-18. This forecasts action by the Board of Equalization next month to increase the price based gasoline rate from 9.8 cents per gallon to 11.7 cents per gallon, effective July 1.
  • Based on these estimates, combined HUTA funding (Streets & Highways Code Sec. 2103-2108) for cities and counties would increase 8.5 percent in FY 2017-18 over the revised current year estimate. 
The Governor’s proposed budget includes a proposal for transportation funding that would send an additional $206,269,000 to cities and counties. Attachment A at the end of the city-by-city estimates contains a column showing how this proposed additional revenue would be allocated among cities and counties. Because this is just a proposal, not signed into law, cities should NOT budget this additional revenue at this time.

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