RECEIVE state legislative update.

This report includes an update on Senate Bill 1, Proposition 6, and other state legislative issues, including an updated bill list.

2017's Senate Bill (SB) 1 created a valuable opportunity to deliver Measure X and other priority transportation projects in Monterey County by providing matching funds for local safety, road repair and congestion relief projects over the next 30 years. Proposition 6 on the November ballot would result in a delay, downscoping or deletion of priority transportation projects by repealing SB 1.  Proposition 6 also requires majority voter approval (via ballot propositions) for any future imposition, increase, or extension of fuel taxes or vehicle fees.

Proposition 6 is the most important issue on the November ballot facing California transportation users. Its passage would repeal SB 1, defunding local and regional transportation projects that were to receive fuel taxes and vehicle fees approved by the legislature and Governor Brown in 2017. Since November 2017, SB 1 monies have been flowing to TAMC for highway, active transportation, regional road, transit and rail projects, via competitive awards, matching funds and the State Transportation Improvement Program. Monies are being used by the cities, counties and transit agencies for local road repairs and lifeline bus service. If Proposition 6 is approved by a majority of voters, over $50 million of annual investments in Monterey County's transportation infrastructure could be lost. 

To date, the cities and county have used this new money to repair storm-damaged county roads, repave local city streets and rebuild sidewalks. SB 1 has also provided funding for Monterey-Salinas Transit (MST) lifeline transit services to residents throughout the County.

Passage of Proposition 6 in November would require transportation agencies statewide to delay, downscope or delete projects currently anticipated to be constructed. Measure X's integrated delivery plan anticipates utililzing SB 1 funding for projects such as:

• Highway 68 safety and congestion relief project;
• State Route 156 widening and 156/101 Interchange improvements;
• Castroville Boulevard interchange project;
• US 101 South of Salinas - interchange and frontage roads;
• Rail Extension to Salinas; and
• Imjin Parkway widening and multimodal corridor.

In fact, the last two projects have already received a total of almost $30 million in SB 1 competitive funding, which is at risk if SB 1 is repealed. 

Attached are a report on SB 1 and other key state legislative activities (attachment 1) and an updated bill list (attachment 2). Most of the bills that TAMC opposed are not moving forward. SB 848, which reduced the indirect rate that Caltrans charges self-help counties to work on sales tax-funded projects, was signed into law, with TAMC's support. 

With regard to the state budget, the current year's revenues have provided an additional $850 million for rail infrastructure improvements; staff will work with the California State Transportation Agency to determine if some of this money can be made available to support rail projects in Monterey County.