California Republicans voiced outrage this week over a plan to divert at least $18 million from the nation’s highest gas tax toward “VIP lanes” on expressways for the 2028 Los Angeles Olympics.
The top Republican on the state Senate Budget Committee said California is right to prepare for the world converging on America’s second-largest city, but that using crucial gas tax revenue directed at a singular project is the wrong move – and that the measure also appeared to be hurriedly introduced.
“The repurposing of lanes isn’t going to change the infrastructure at all. The infrastructure will be exactly the same when they’re done as it was before they start – and gas tax money is intended for infrastructure improvements; new infrastructure; repairing infrastructure, and that’s not what they’re doing here,” said state Sen. Roger Niello, of Carmichael.
“I don’t have a problem with helping LA out with their logistics for the Olympics, but I don’t think the state should pay for it, regardless of where it comes from,” Niello said, saying a loan is preferred to taxpayer funding.
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A loan would be easily paid off from the financial windfall the region is poised to welcome then, he predicted.
“A perhaps larger issue is the lack of transparency in our budget process. This issue just came up when the budget was introduced … and it just pops up like that,” Niello added.
California’s gas taxes are the highest in the nation, with Illinois and Pennsylvania rounding out the top three very close behind, and Sacramento Republicans further cited a Reason study showing the Golden State ranking 49th in cost-effectiveness and condition of highway infrastructure.
Niello and others suggested that given California’s ranking, such revenue should only be spent on improving the state’s infrastructure. The $18 million figure could also grow to $38 million due to a separate provision, he noted.
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The Newsom administration hit back at the idea that the expenditure was misguided.
Deputy Finance Director HD Palmer suggested it is just a miniscule part of a massive annual investment made into CALTRANS and the state highway system.
The “Games Route Network” it aims to set up mirrors what the United Kingdom did for London’s 2012 Olympics, Palmer said.
“When we’re talking about VIP lanes, we’re not talking about stretch limos here. We’re talking about being able to move teams and coaches and players and people who are participating in the Olympics from their home base to their venues efficiently throughout the LA basin.”
He quipped that critics of the move appear to prefer having the U.S. Men’s Basketball Team miss their potential “Gold Medal final, because they’re cool with them being stuck on the 110.”
Palmer added that the millions appropriated would be dwarfed by the $5 billion he said the current state budget directs to infrastructure overall, adding that Niello is a “great guy,” no matter any disagreement.
He also said the July 1 hike in the gas tax has nothing to do with this or any other budget move, as the increase is “ministerial” based on how the tax is calculated by current law.
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A similar setup exists in other states, including New Jersey, where then-Gov. Chris Christie was praised for overseeing a gas tax decrease that was mostly due to statutory calculations involving revenue targets and the like. Palmer did not wave off that comparison.
California Senate Minority Leader Brian Jones, R-San Diego, was not convinced.
“While Californians are being forced to pay even more at the gas pump on July 1, Democrat politicians are diverting those additional tax dollars to chauffeur Olympic elites around Los Angeles,” he said.
“This is exactly what’s wrong with Sacramento,” Jones said.
“Instead of fixing our roads or providing relief to struggling families, the wealthy political class finds new ways to reward insiders while working Californians foot the bill. They raise your gas prices so VIPs can ride free.”
California is one of several states with a history of comparatively bad roads, similar to the oft-dubbed “Pothole-vania” or “washboard” pavement in urban parts of New York State.
