A letter to Congress from a coalition of transportation agencies from across Southern California cites several ways that the proposed legislation could negatively impact the regional transportation industry.
A coalition of transportation agencies from across Southern California on Nov. 28 issued a joint letter to Congressional leadership saying that the current tax reform proposals pose a threat to Southern California’s transportation system and regional economic health.
The letter cites several ways that the proposed legislation could negatively impact the transportation industry. Specifically, the letter’s authors say, Southern California would be hurt by elements of the tax plan that eliminate advance refunding bonds and fail to renew alternative fuel benefits.
According to the letter, elimination of advance refunding bonds would erode funding for transportation improvements, making Southern California infrastructure projects more dependent on federal funding.
“Economic prosperity in Southern California depends on transportation investment, which is an engine of goods movement for the nation,” said Hasan Ikhrata, executive director of the Southern California Association of Governments.
The letter also states that not extending tax credits for alternative fuels and related infrastructure weakens the long-term energy security of the nation and undermines Southern California’s extensive work to push forward on emissions goals and reduce consumer reliance on gas and diesel.
The letter is signed by the Southern California Association of Governments, Los Angeles County Metropolitan Transportation Authority, San Diego Association of Governments, Ventura County Transportation Commission, Orange County Transportation Authority, Riverside County Transportation Commission, San Bernardino County Transportation Authority, Imperial County Transportation Commission and Metrolink, a regional passenger rail system.
Both the House and Senate versions of the tax plan pose a threat to a potential standalone infrastructure package, the Southern California Association of Governments said, also remarking that neither proposal includes a long-term fix for the structural revenue deficit of the Highway Trust Fund, which finances about one-fourth of the nation’s public highway and mass transit spending.
“If the above provisions remain unchanged, passage of the tax legislation would deal Southern California’s infrastructure plans a serious blow, and could signal a major setback to transportation projects nationwide,” SCAG said in a statement.
Southern California transport agencies raise concerns about tax reform proposals
