New gas tax allocation estimates show continued growth

By Brian Lee-Mounger Hendershot, Cal Cities Advocate managing editor  

Cal Cities this week released new local streets and roads revenue estimates, prepared by Cal Cities Fiscal Policy Advisor Michael Coleman. The allocations come from tax revenues collected at gas pumps and other sources. Cities and counties should use these estimates when budgeting for certain transportation projects.

The report is based on new statewide tax revenue estimates released by the California Department of Finance with Gov. Gavin Newsom’s May Revision released on May 14. The county estimates were prepared in collaboration with the California State Association of Counties.

This update contains individual city and county estimates for the current fiscal year 2023-24 and budget year 2024-25. Overall allocations to cities and counties from the Highway Users Tax Account and the Road Maintenance and Rehabilitation Account are projected to climb 10.8% in the current fiscal year above the prior year. For the budget year 2024-25, Coleman is projecting a 4% growth over the current year. Individual agency amounts and growth rates will vary.

The report includes specific city and county estimates, which are suitable for budgeting and long-range planning. The next update of these estimates will be in January 2025. 

The revenue estimates, together with a detailed explanation of local streets and roads revenues and allocations are available online.