Infrastructure bonds for transportation, goods movement and air quality

By CMTA Staff

Capitol Update, Feb. 10, 2006 Share this on FacebookTweet thisEmail this to a friend

This week the Senate Committee on Transportation and Housing held an informational hearing to discuss transportation aspects of the "Governor’s Strategic Growth Plan". The hearing covered the transportation project selection process, including who has the charge to select transportation projects and what criteria should be used in the selection. It also covered the "goods movement" and air quality proposals.

Six billion dollars is proposed for these investments:
Increase highway capacity
Safety & rehab. of state hwy. systems
Port mitigation
Goods movement
Intercity rail
Corridor mobility
Intelligent systems
Bicycle/park & ride
$1.7 billion
$1.3 billion
$1.0 billion
$1.0 billion
$400 million
$300 million
$200 million
$100 million

The Governor’s plan requires a 4/1 (state/private) match for goods movement investments and a 1/1 match for air quality projects. It is proposed that private industries that benefit from the projects would provide the matching funds. Examples of prospective air quality projects include Carl Moyer-type truck fleet upgrades and electric hook-ups for ships in port.  Legislators discussed the need to insure geographic equity, to focus on true infrastructure investments, and to have state environmental agencies determine how funds are directed.  

The Governor’s office of External Affairs released the following points to highlight the economic benefits of the proposed transportation and air quality infrastructure investments:
  • For every dollar invested in roads, the commercial sector of the economy saves an average of 24 cents per year in production costs.
  • For every dollar invested in transportation infrastructure, $2.60 in benefits such as time savings, reduced congestion, fewer fatalities and overall increased production are recovered.
  • The goods movement industry supports one out of seven jobs in California (including many high wage jobs in logistics, finance, and other professions), contributes more than $200 billion per year to the economy and produces more than $16 billion in state and local taxes.
  • The $2 billion dedicated in the Strategic Growth Plan for air quality improvement projects would yield emission reductions of approximately 27,000 tons of particulate matter (PM) and 330,000 tons of oxides of nitrogen (NOx), cumulatively over a 15 year period and is estimated to prevent 1,800 premature deaths. The economic benefit of this effort is projected to be $8 billion.
  • The transportation element of the Governor's Strategic Growth Plan will create nearly 150,000 sustainable jobs (149,600 @ 18,700 jobs per billion).
  • The $8 billion in new investment in transportation infrastructure annually will yield more than $6 billion in labor income and more than $510 million in state and local tax revenue.
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