Dec. 20, 2023 – According to a note in CalCIMA’s e-newsletter, the Legislative Analyst’s Office (LAO) issued a report that says the conversion from gasoline and diesel- powered cars and trucks to more efficient or electric ones will decrease annual transportation revenue noticeably by 2034-2035. Currently, dedicated transportation revenue from fuel and weight taxes and fees amounts to $14.2 billion annually. By 2034-2035, this total amount could decrease by $4.4 billion per the LAO estimate. Most of the decrease will be from gasoline taxes as cars convert to electric. In the long run, the report says new funding sources will be needed.
Electric Vehicles and Transportation Revenue
