DATE:
March 15, 2022
22
TO:
Board of Supervisors
SUBJECT
Title
REQUEST FOR TEMPORARY SUSPENSION OF STATE GAS TAX (DISTRICTS: ALL)
Body
OVERVIEW
With soaring gas prices, increasing utility costs, skyrocketing housing costs, and the rising cost of consumer goods due to inflation, many San Diegans struggle, now more than ever, to afford basic needs. Many seniors, living on fixed incomes, struggle to pay their monthly bills. In late February, San Diego County recorded its highest average gas prices in history. Global gas prices are rising, and California residents are experiencing the most exorbitant rates in the nation. To alleviate the financial burden of the climbing gas prices in California, a temporary suspension of the $0.51 per gallon state gas tax is necessary.
Traditionally, the state gas tax is used to pay for road maintenance and repairs throughout the state. To compensate for the tax suspension and cover road maintenance and safety costs, the Governor and State legislature should use the estimated $45 billion state budget surplus. For Fiscal Year 2021-22, the State's gas tax is expected to raise approximately $6.8 billion from gasoline purchases for vehicles using public roads, according to the State's Legislative Analyst Office. Using only 15% of the projected State surplus can lower gas prices by 51 cents per gallon throughout California this year.
Today's action would request a one-year suspension of the State gas tax and utilization of the budget surplus to ensure maintenance of California's roads and infrastructure. By supporting this proposal, the Board of Supervisors can advocate for a temporary solution to the increasing financial burdens experienced by San Diego's residents and businesses.
RECOMMENDATION(S)
SUPERVISOR JIM DESMOND AND SUPERVISOR JOEL ANDERSON
1. Direct the Chief Administrative Officer to draft a letter to the Governor and San Diego County's State legislative delegation requesting a temporary one-year suspension of...
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