SB 955 Infrastructure Gap Funding


The goal of SB-955 is to help cities and counties complete vital infrastructure projects by creating a new grant that the legislature will fund year to year.



California is currently facing infrastructure challenges, with many projects funded by local taxes remaining incomplete. The rising costs of labor, materials, and regulations contribute to this problem. According to the California Construction Cost Index (CCCI), the Consumer Price Index (CPI) was 1.5% in 2013. When the CPI is low, it is easier to build because inflation does not eat away at one's funding. However, recent years have seen a significant surge in annual percentages, with CPI reaching 9.4% in 2023. The I-215 Keller Road interchange project in California highlights the challenges of building infrastructure under these conditions. Originally estimated to cost $12 million in 2013, the project's cost has now ballooned to $49 million. 


California's infrastructure is plagued by a lack of quality, which can be attributed to the state's inability to adequately and timely fund projects. This is shown in the national survey that 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. Without funds, many of these projects will get delayed or canceled.


Grant programs have proven to be effective in supporting infrastructure projects. The Federal Rebuilding American Infrastructure with Sustainability and Equity (RAISE) discretionary grants program has successfully supported a wide range of infrastructure projects, such as a new downtown transit center in New Orleans and the reconstruction of Route 6 on the Standing Rock Indian Reservation in South Dakota. These projects have enhanced transportation systems, created safer environments, generated employment opportunities, and contributed to economic growth. 



SB-955 aims to create a grant funding program upon appropriation called the "Gap Fund" that will be managed by the Office of Planning and Research (OPR). The Gap Funding Program's objective is to support cities and counties in initiating or completing various infrastructure projects, including, but not limited to fire stations, schools, health and safety improvements, and roads.

Click HERE to read the bill language