Source: National Transit Database, Department of Transportation; PIIRA Database, California Energy Commission
Analysis by CEC Economics
Highlight
- The enacted budget for FY 2024-2025 still provides billions of dollars of investments in equitable and clean transportation, albeit at lower levels compared to the FY 2023-2024 budget.60 Specifically, the Budget shifts from the General Fund to the Greenhouse Gas Reduction Fund (GGRF) to fund general public transit programs ($839 million), the Statewide, Regional, and Local Transit and Rail Projects-Competitive Grants ($507 million), and active transportation programs ($350 million).
60 A copy of the transportation budget can be viewed here General: https://ebudget.ca.gov/2024-25/pdf/Enacted/BudgetSummary/FullBudgetSummary.pdf
Challenge
- Due to the budget shortfall, the FY 2024-2025 budget also contains billions of dollars of deferrals and spending reductions to important clean transportation programs. These delays include: $1 billion of formula Transit and Intercity Rail Capital Program funds, $680 million to Zero Emission Transit Capital Program, $137 million to Clean Trucks, Buses and Off-Road Equipment, $120 million to ZEV Fueling Infrastructure Grants, and $100 million to Community-Based Plans, Projects and Support/Sustainable Community Strategies. Several existing programs are projected to deplete their funding by 2028. A recent report by the Natural Resources Defense Council (NRDC) highlights a significant gap in California's allocation of transportation funds, with only 18.6% directed towards low-carbon mobility options.61 The Legislative Analyst Office projects that California will face significant operational deficits in future years beyond FY 2024-2025, which represent additional budget problems that may result in further cuts and delays.62
61 Natural Resources Defense Council. CLOSING THE CLIMATE INVESTMENT GAP: CALIFORNIA MUST PRIORITIZE CLIMATE-SMART TRANSPORTATION PROJECTS. October 2023. Accessed August 24, 2024. Available at: https://www.nrdc.org/sites/default/files/2023-09/ca-transportation-investment-report.pdf
62 Legislative Analyst Office. The 2024-25 Budget: California’s Fiscal Outlook. December 7, 2023. Assessed August 24, 2024. Available at: https://lao.ca.gov/Publications/Report/4819
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