Infrastructure gap funding bill moves to Assembly Appropriations

By Damon Conklin, legislative advocate

A bill that would make it easier for cities to fund essential infrastructure projects, SB 74 (Seyarto), passed out of Assembly Local Government on consent. The Cal Cities-supported bill would bridge funding gaps by offering grants that support roads, bridges, water, and other vital infrastructure projects.

Many cities struggle to fund essential projects due to financial constraints, making it difficult to meet the demands of residents and businesses. In recent years, the funding gap has worsened as construction costs have escalated. Cities now face longer timelines associated with permitting and environmental requirements, such as the California Environmental Quality Act.

“Unfunded state mandates continue to stretch our limited resources, forcing us to shift funds away from infrastructure in order to meet regulatory requirements,” Oakley Mayor Shannon Shaw told Cal Cities. “This only further delays projects that are crucial to public safety, mobility, and community well-being. SB 74 helps to bridge those funding gaps.”

Oakley is working on several projects to meet the needs of its growing population, including widening roads, building railroad overcrossings, developing parks, and constructing libraries. An overall funding gap of approximately 15% is being driven by delays caused by change orders, a lack of subcontractors, and building material shortages.

The need for more funding is pronounced in other cities throughout the state. Chino began planning a new fire station in 2022 with an estimated cost of $13.2 million. That number has now risen to $20.7 million, primarily due to construction costs jumping from $750 to $1,250 per square foot for critical infrastructure projects.

An ambitious 68-acre project known as the Clearwater East Specific Plan in Paramount has also run into delays resulting in unforeseeable costly overruns.

These are the types of projects that ensure a healthy, resilient, and connected future for Californians — but only if the necessary resources are available to complete them.

By supporting SB 74, the state would affirm its commitment to strengthening communities like Oakley and ensuring cities have the resources to deliver on critical projects and essential improvements our residents need and deserve.

The bill now heads to the Assembly Appropriations Committee. City officials are encouraged to submit letters of support.