CSAC Opposes Administration’s Proposal to Divert Funding from the Local Streets & Roads Program

CSAC is opposed to a proposal in the Governor’s Budget to provide a tax credit for Sustainable Aviation Fuel (SAF) that will be funded by diverting millions away from the Local Streets & Roads program that was created by SB 1 (2017).

For background, the Local Streets and Roads program is a state revenue source that supports critical maintenance efforts on county roads and bridges. The SAF proposal at its highest impact would divert over $800 million away from the Local Streets and Roads program over the proposed 9-year duration of the tax credit.  The SAF tax credit would also divert funds away from state-level programs that support highway maintenance and projects to improve freight corridors in the state.  

CSAC is working with other local government organizations to oppose this fundamental breaking of the commitment that local governments made to ensure the fuel tax increases provided by SB 1 are dedicated to road maintenance purposes, not fund experimental fuels for 1 mode of transportation.