California governor’s plan to pay for $500 million in transit projects
Posted February 09, 2018 06:02:16 California Governor Jerry Brown’s plan for a $500-million transit investment for California’s metropolitan areas has prompted a flurry of questions and comments from lawmakers.
Brown’s proposal includes a new transit line for the Bay Area, an extension of Interstate 580 and the expansion of the Interstate 5 corridor to include the city of Sacramento, a new highway, a tunnel to connect the Sacramento-San Joaquin Delta, and more.
The state will also pay for a new freeway to be built through the Central Valley and the California-Mexico border.
In the first months of his administration, Brown has promised to spend $1 billion for transit.
Brown has also proposed raising the sales tax on gas and groceries to fund the $500 billion in capital investment.
He also has proposed to give a one-time grant of $1 million to the University of California to hire 10,000 people.
Brown also has said he wants to create a public transportation commission to study the feasibility of adding new regional rail lines, commuter rail lines and bus lines in the state.
The California Legislature also has scheduled hearings for the first day of the legislative session on Feb. 10 on Brown’s proposed funding for transit, transportation, and regional transit.
On Tuesday, Brown said he expects the governor to release the full details of his transit plan in the next couple of weeks.
“There’s going to be some stuff out there that will make people wonder whether this is the right approach,” said Sen. Ted Gaines, D-San Jose, who chairs the Senate Finance Committee.
“This is the sort of thing where it gets people thinking.”
The governor’s proposal would increase the sales-tax hike on groceries by 0.9% to 6.75% and the property-tax increase by 0% to 3.2%.
That would leave the sales and property tax increases at 1.25% and 0.6% respectively.
“I think we’ve seen enough of this in California in the last couple of years,” Gaines said.
“And I think that is really what we’re here to debate.”
The proposal would also increase the tax on gasoline by 0,5% to 8.75 cents per gallon, while increasing the property tax by 0%, the same amount, to 6 cents per $100 of assessed value.
In other words, Brown’s idea would increase taxes on the highest income households in the county, and decrease taxes on lower-income households.
The plan would also raise property taxes by 0%.
According to the state’s Fiscal Analyst’s Office, property taxes have gone up 0.2% this year, the fastest rate in California’s history.
The increase comes on top of increases of 4.6%, 5.9%, 6.3%, and 6.5% since 2020, respectively.
Brown proposed to increase the state sales-federal income tax by 6.25%, and increase the corporate income tax to 10%.
The proposed tax increases would have a direct impact on the state, which would lose out on nearly $3 billion in federal revenue, the Fiscal Analyst estimates.
Brown is also proposing to increase property-fiscal-tax rates for California businesses and homeowners.
His proposal would raise the sales taxes on all residential properties by 6%, and the home-equity tax by 2%.
“There is a lot of money going to the middle class in California, and we are going to continue to put more of it in,” Gainis said.
Brown would also have a state revenue sharing plan in place with the federal government.
“The revenue-sharing plan we’re going to have in place will provide a way for us to balance the budget in a way that does not negatively impact the state budget,” he said.