Leveraging SB1 Funding

Considerations for California Public Entities Entitled to Receive SB1 Revenues and their Financial Advisors and Underwriters

In April 2017, the Road Repair and Accountability Act of 2017 was enacted in California (also known as California Senate Bill “SB1”). Key facts about SB1 are as follows:

  • SB1 is the landmark transportation funding package which generates new revenues from several transportation-related taxes and fees.
  • $5.2 billion a year is the new estimated revenue expected to be generated for use by the State, cities, counties and certain other governmental entities on transportation infrastructure in California.

Governmental entities entitled to receive the new SB1 revenues may be evaluating whether there is a need for accelerating the SB1 funding by leveraging the revenue stream(s). This will depend in large part on the amount of eligible transportation projects that are construction ready.