Caltrans outlines budget changes including $9M for road usage charge pilot program

February 22, 2025 | Transportation Commission, Agencies under Office of the Governor, Executive, California


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Caltrans outlines budget changes including $9M for road usage charge pilot program
Budget discussions took center stage at the California Transportation Commission meeting, with a significant update on funding allocations and future projects. Stephen Keck presented a detailed overview, revealing that approximately $942 million has been allocated to 78 projects, representing about a quarter of the total capacity. This leaves a substantial $2.7 billion available across all programs, indicating a stable financial outlook for ongoing transportation initiatives.

Keck noted that there is currently no need to adjust the allocation capacity, which is encouraging news for stakeholders. However, the budget for Caltrans is projected to decline slightly to $10.5 billion, a trend seen in recent years as the state wraps up the Proposition 1B program. The budget reflects a $97 million increase in state operations, primarily due to salary and benefit adjustments.

One of the most noteworthy proposals is a request for $9 million to support the implementation of a road usage charge pilot program. This initiative aims to explore new funding mechanisms for transportation infrastructure as traditional gas tax revenues decline. Additionally, Caltrans is seeking a $12 million increase to accelerate the greening of its fleet, aligning with Air Resources Board requirements for cleaner diesel and engine standards.

These budgetary decisions and proposals highlight the ongoing efforts to innovate and adapt California's transportation funding strategies in response to changing needs and environmental standards. The commission's focus on these key areas sets the stage for future developments in the state's transportation landscape.

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