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Home»Economy & Business»Fuel tax funds for Olympic VIP lanes spark outrage amongst California GOP
Economy & Business

Fuel tax funds for Olympic VIP lanes spark outrage amongst California GOP

AdminBy AdminJune 27, 2025No Comments4 Mins Read
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Gas tax funds for Olympic VIP lanes spark outrage among California GOP
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Gov. Gavin Newsom, D-Calif., responds to the riots in Los Angeles over ICE raids on ‘Hannity.’

California Republicans voiced outrage this week over a plan to divert at the very least $18 million from the nation’s highest fuel tax towards “VIP lanes” on expressways for the 2028 Los Angeles Olympics.

The highest Republican on the state Senate Finances Committee stated California is correct to organize for the world converging on America’s second-largest metropolis, however that utilizing essential fuel tax income directed at a singular venture is the flawed transfer – and that the measure additionally gave the impression to be hurriedly launched.

“The repurposing of lanes is not going to vary the infrastructure in any respect. The infrastructure shall be precisely the identical once they’re performed because it was earlier than they begin – and fuel tax cash is meant for infrastructure enhancements; new infrastructure; repairing infrastructure, and that’s not what they’re doing right here,” stated state Sen. Roger Niello, of Carmichael.

“I haven’t got an issue with serving to LA out with their logistics for the Olympics, however I do not suppose the state ought to pay for it, no matter the place it comes from,” Niello stated, saying a mortgage is most popular to taxpayer funding.

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The Olympics HQ, left, Interstate 5, proper (Reuters / Reuters)

A mortgage can be simply paid off from the monetary windfall the area is poised to welcome then, he predicted.

“A maybe bigger challenge is the dearth of transparency in our price range course of. This challenge simply got here up when the price range was launched … and it simply pops up like that,” Niello added.

California’s fuel taxes are the best within the nation, with Illinois and Pennsylvania rounding out the highest three very shut behind, and Sacramento Republicans additional cited a Purpose research exhibiting the Golden State rating forty ninth in cost-effectiveness and situation of freeway infrastructure.

Niello and others recommended that given California’s rating, such income ought to solely be spent on enhancing the state’s infrastructure. The $18 million determine might additionally develop to $38 million resulting from a separate provision, he famous.

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The Newsom administration hit again at the concept the expenditure was misguided.

Deputy Finance Director HD Palmer recommended it’s only a miniscule a part of an enormous annual funding made into CALTRANS and the state freeway system.

The “Video games Route Community” it goals to arrange mirrors what the UK did for London’s 2012 Olympics, Palmer stated.

“Once we’re speaking about VIP lanes, we’re not speaking about stretch limos right here. We’re speaking about having the ability to transfer groups and coaches and gamers and people who find themselves taking part within the Olympics from their dwelling base to their venues effectively all through the LA basin.”

He quipped that critics of the transfer seem to desire having the U.S. Males’s Basketball Crew miss their potential “Gold Medal ultimate, as a result of they’re cool with them being caught on the 110.”

Palmer added that the hundreds of thousands appropriated can be dwarfed by the $5 billion he stated the present state price range directs to infrastructure general, including that Niello is a “nice man,” irrespective of any disagreement.

He additionally stated the July 1 hike within the fuel tax has nothing to do with this or another price range transfer, as the rise is “ministerial” based mostly on how the tax is calculated by present legislation.

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An identical setup exists in different states, together with New Jersey, the place then-Gov. Chris Christie was praised for overseeing a fuel tax lower that was principally resulting from statutory calculations involving income targets and the like. Palmer didn’t wave off that comparability.

California Senate Minority Chief Brian Jones, R-San Diego, was not satisfied.

“Whereas Californians are being compelled to pay much more on the fuel pump on July 1, Democrat politicians are diverting these further tax {dollars} to chauffeur Olympic elites round Los Angeles,” he stated.

“That is precisely what’s flawed with Sacramento,” Jones stated. 

“As an alternative of fixing our roads or offering reduction to struggling households, the rich political class finds new methods to reward insiders whereas working Californians foot the invoice. They increase your fuel costs so VIPs can journey free.” 

California is considered one of a number of states with a historical past of comparatively dangerous roads, just like the oft-dubbed “Pothole-vania” or “washboard” pavement in city elements of New York State.

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