SACRAMENTO – (INT) – Falling gasoline prices will put a lot of pending transportation projects on the back burner.

There has been a steady loss of gas tax revenue over the past two years because of sagging pump prices. But, now the other side of the coin is to be reckoned with.

The California Transportation Commission (CTC) adopted a five-year state transportation funding plan Wednesday that cuts $754 million and delays another $755 million in spending. It is the largest funding reduction since the current state transportation funding structure was adopted 20 years ago.

CTC Chair Bob Alvarado regretted the action and called on the Legislature and Governor to agree on a quick solution.

On July 1, 2016, the state gas tax will be reduced to 9.8 cents from the current 12 cents a gallon.

The Automobile Club notes, meantime, that Southern California motorists are still paying the highest gasoline prices in the country and the recent start-up of the ExxonMobile refinery at Torrance has had little effect on pump prices.

Story Date: June 2, 2016