These new figures, which include Highway Users Tax Account (HUTA), Traffic Congestion Relief Fund (TCRF), and Road Maintenance and Rehabilitation Account (RMRA) distributions, are based on updated estimates of state fuel tax and vehicle registration fee collections released by the California Department of Finance (DOF) with Gov. Gavin Newsom’s May Revision to his proposed 2020-21 State Budget.
Impacts due to the COVID-19 pandemic have caused declines in fuel consumption and vehicle sales, which has reduced state transportation tax revenues. The DOF’s May estimates show that LSR allocations to cities and counties for the current year 2019-20, and budget year 2020-21, will be down almost $500 million from previous estimates.
Due to tax rate increases stipulated in SB 1, The Road Repair and Accountability Act of 2017, total 2019-20 LSR allocations (including HUTA, TCRF, and RMRA) are still estimated to be 3.3 percent above 2018-19. These are lower than January projections, yet 2020-21 estimated LSR allocations are projected to increase 2.7 percent over 2019-20.
Cities can read the full “explainer” and view the new estimates online
for more information.