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It's never an easy decision to support a proposal that includes raising taxes, and not one the Oxnard Chamber of Commerce Board of Directors takes lightly. That is why Chamber staff did extensive research when Assemblymember Jacqui Irwin asked for our position on AB 1 (Frazier) Transportation Funding Package. The proposal has something in it for everyone to either love of hate (mostly the latter). However, the condition of our local, regional and state roads leads many to set aside their hate of raising taxes and fees to get some relief for our crumbling infrastructure. The current proposal includes these new funding sources: • Gasoline Excise Tax -- $1.8 billion (12 cents per gallon increase) • End the State Board of Equalization ”true up” -- $1.1 billion • Diesel Excise Tax -- $600 million (20 cents per gallon increase) • Vehicle Registration Fee -- $1.3 billion ($38 per year increase) • Zero Emission Vehicle Registration Fee -- $21 million ($165 per year starting in 2nd year) • Truck Weight Fees -- $500 million (return to transportation over five years) • Diesel Sales Tax -- $263 million (increase increment to 5.25%) • Cap and Trade -- $300 million (from unallocated C&T funds) • Miscellaneous transportation revenues -- $185 million What would all this revenue provide? • State -- $1.9 billion annually for maintenance and rehabilitation of the state highway system. • Locals -- $2.4 billion annually for maintenance and rehabilitation of local streets and roads. (Oxnard would see more than $7 million of this each year.) • Regions -- $577 million annually to help restore the cuts to the State Transportation Improvement Program (STIP). • Transit -- $563 million annually for transit capital projects and operations. • Freight -- $600 million annually for goods movement. • Active Transportation -- $80 million annually, with up to $150 million possible through Caltrans efficiencies, for bicycle and pedestrian projects. • Constitutional Amendment to help locals raise funding at home by lowering the voter threshold for transportation tax measures to 55 percent. (This provision will be in a companion bill.) Governor Jerry Brown wants the transportation funding package finalized and enacted by the legislature before they go on spring break April 6. There is likely to be a lot of negotiating in both the Assembly and the Senate, where SB 1 (Beall) is the Senate version of AB 1. Our research tells us that the California Chamber of Commerce supports new revenue to repair and maintain the state's road and bridges, but has not yet taken a position on either bill. The Ventura County Transportation Commission has adopted a set of principles for state transportation revenue, but will likely not take a position on either bill. The Automobile Club of Southern California currently has an "oppose unless amended" position because they oppose the new annual charge on all vehicles and gas / diesel tax increases. The California Trucking Association is maintaining a neutral position while they are negotiating some of the specific new revenue sources in the proposal. The Chamber is very concerned about the condition of our local streets and roadways. Goods movement in and out of our industrial and agricultural zones is a top priority. We also see this proposal as a means to accomplish the proposed rail overpass of Rice Avenue at Fifth Street, which would aid traffic in and out of the Port of Hueneme. The Chamber Board voted to support AB 1 provided the companion bills are passed before or at the same time the funding package is voted on. The companion bills would assure these funds are segregated for transportation use only – not in the general fund – and would lower the threshold for passing local transportation tax measures from two-thirds to 55%.