Unfair transportation funding must be addressed

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OPINION – California’s transportation funding system is unfair, and drivers, transit riders, and people who bike and walk will suffer the consequences if it isn’t fixed.

Traditional gas-powered vehicle drivers are doing their part. They pay 61.2 cents in state gas tax for every gallon they purchase – about $338 per year on average. That revenue pays for roughly 80% of road and highway repairs in California and supports biking, walking and transit.

Some drivers contribute much less. Electric vehicle drivers do not pay the gas tax; instead, they pay a $118 annual road improvement fee – less than half of what the average gas-powered driver contributes.

Fuel-efficient vehicles also factor into declining revenues, allowing drivers to travel farther while paying less into the system. This means that some drivers, including many lower-income, rural and long-distance commuters who rely on older, less fuel-efficient vehicles, contribute more under the current system.

The state’s leadership in reducing air pollution by encouraging more fuel-efficient and zero-emission vehicles is good for Californians. But if the funding model doesn’t change to reflect how vehicle use is evolving, the gap between road use and funding will continue to grow.

The result is a projected $31 billion loss over the next decade, according to the California Transportation Commission. Without action, the state and local communities will have fewer resources to fix potholes, improve safety for motorists, bicyclists, and pedestrians, and maintain transit service.

California relies on gas tax revenues to fund the system that supports local streets and roads, state highways, transit connectivity and the movement of goods across the state. The gas tax was designed as a “user pay” system, in which drivers contribute based on how much fuel they consume as a proxy for road usage. That model no longer reflects how many Californians use the roads.

Correcting the imbalance should not require drivers who are already paying more than others to shoulder an even greater burden. It should mean modernizing a system that no longer works as intended. Everyone should pay their fair share.

If nothing is done, local governments will be among the first to feel the impact as they rely heavily on gas tax revenues to fill potholes, resurface streets, repair bridges and maintain sidewalks and bike lanes so communities can have safe, seamless and connected transportation networks.

Transportation investments are not just about mobility and congestion relief. Reliable infrastructure is foundational to public safety and disaster response, including minimizing hazards that can cause collisions and ensuring timely access to emergency services and safe evacuation routes.

California already struggles with aging infrastructure. Half of the state’s major roads are in poor or mediocre condition. Poor road conditions cost drivers money in repairs, wasted fuel and lost time, and they make moving goods more expensive. Transportation infrastructure is much costlier to fix than to maintain.

The growing shortfall demands action. Legislators and other state officials must consider viable alternatives. Identifying the best way forward will require an open, collaborative and research-driven approach among all stakeholders.

Assemblymember Lori Wilson, chair of the Assembly Transportation Committee, is taking a responsible, thoughtful approach. She has convened informational hearings and held town hall meetings across the state to gather information and perspectives from a range of stakeholders.

The Fair Transportation Funding Coalition, a broad coalition of business, labor, local government and community groups, is supporting efforts that take into account fairness, economic growth, public safety, accountability and enduring solutions.

Other states are already modernizing their transportation funding. California has studied the issue and piloted programs exploring alternatives, including a road user charge based on miles driven. Safeguards are built in to ensure no driver would pay both the gas tax and a road user charge.

California’s transportation system connects our communities, supports our economy and protects public safety. Modernizing how we fund it is about aligning policy with reality and ensuring funding remains fair, accountable and sustainable.

Kiana Valentine is executive director of Transportation California, which advocates for policy solutions to improve the state’s multimodal transportation system.