To reflect the updates to the new state revenue estimates, the League of California Cities and the California State Association of Counties generated new 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 the current FY 2019-20 and budget year 2020-21.
These figures should be used by your agency 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 2103-2107 HUTA estimates for the current FY 2019-20 year are about 2.4 percent lower than previously projected in May 2019 to about 0.2 percent higher than FY 2018-19 actuals. These revenues are projected to increase by about 5.0 percent in FY 2020-21 largely due to the July 1, 2020 cost-of-living rate adjustments under SB 1.
- The new RMRA revenue estimates for FY 2019-20 are 12.4 percent higher than May 2019 estimates. These revenues are projected to increase in FY 2020-21 by 2.5 percent.
- In total (HUTA, TCRF, RMRA), local streets and roads revenues to cities and counties are estimated to increase 25.3 percent in the current FY 2019-20 year over the prior year (due largely to the Section 2103 rate reset on July 12, 2019) and by 5.5 percent in FY 2020-21 over the current year.
A full report explaining all city and county formula based local streets and roads allocations from the state, along with an explanation of the new revenues and detailed tables with updated estimates for each city and county, is available on the California Local Government Finance Almanac