Summary
SB 74 will establish the Infrastructure Gap Fund, which upon appropriation by the Legislature, provides grants of up to 20 percent of necessary remaining funding to cities and local agencies for critically delayed and vital infrastructure projects— including but not limited to roads, schools, and broadband— throughout California.
Background
California has been facing chronic delays in vital infrastructure projects for many years. Given that many projects are funded by the state’s local tax bases, the recent exodus of individuals from the state, and the rising costs of labor, materials, and regulations, the problem has significantly compounded. California’s Consumer Price Index (CPI) has increased 20 percent since 2020, further exacerbating the chronic delays in completing vital infrastructure projects. Notably, the I-215 Keller Road interchange project in Southern California is just one of many infrastructure projects that have been delayed due to ballooning cost— originally estimated at $12 million in 2013, the project's final cost has ballooned to upwards of $40 million in 2024.
The quality of California’s infrastructure has also been impacted by delays, as the state is notorious for its inability to adequately and timely fund vital infrastructure projects. As a result, the state's infrastructure ranks below the national average in 12 out of 13 highway categories— including poor pavement quality, heavy traffic congestion, and high road fatality rates. Of the 25,818 bridges in the state, 1,591 (6.2%) are classified as structurally deficient. Ultimately, further delays in completing these projects creates more harm, larger impacts on the climate, and increased costs to taxpayers.
California has led the nation on many fronts, however the state’s infrastructure is decaying due in part to the delayed allocation of funds, leading to swelling costs that ultimately hinders critical infrastructure projects from being completed.
Proposal
SB 74 establishes the "Gap Fund,” managed by the Office of Land Use and Climate Innovation (LCI), which will offer grants for the remaining 20 percent of project costs to cities and local agencies. To be eligible, the project must be 80 percent financed with 10 percent coming from local funds; “Gap Fund” grants can be used once per project and the infrastructure projects should be shovel-ready.