Contact: justin.tran@sen.ca.gov
SACRAMENTO – This past weekend, Governor Gavin Newsom announced the signing of Senate Bill 862 authored by Senator John Laird (D-Santa Cruz), which will allow Santa Cruz voters to decide if the County of Santa Cruz should raise the transaction and use tax above the combined tax rate limit to support the Santa Cruz Metropolitan Transit District’s (METRO) long-term financial health and operational goals.
“I thank Governor Newsom for signing this important legislation and supporting our community as we grapple with solving our transportation needs. As a former METRO board member, I understand how critical the funding this bill aims to unlock is to METRO’s short- and long-term operations as the agency works to rebuild its ridership after the pandemic,” said Senator Laird.
“I have seen firsthand the work METRO is doing to revamp its services with greater focus on increased frequency, convenience, and accessibility, and SB 862 is vital to that work and the mobility of Californians throughout Santa Cruz County.”
Santa Cruz County has a large student population, constrained and congested corridors, an aging population and high cost of housing, all of which serve to create a large population of transit dependent riders. 65% of METRO’s customers earn less than $24,000, and over 60% of METRO customers do not have access to a car. METRO pursues a goal of further improving transit service and expanding access to it, and in line with this goal, the revenue generated would be used to support METRO’s ParaCruz service and fixed route service, and move to agency to fiscal solvency.
“The Board of Directors at Santa Cruz METRO is eager to talk with residents about the future of METRO and envisioned service improvements on modern, zero emission vehicles. We appreciate the leadership of State Senator John Laird in working with the legislature and Governor to approve SB 862.” said Shebreh Kalantari-Johnson, Chair Santa Cruz METRO
“A sign of vibrant communities is quality transportation for all residents. Thank you Senator Laird for your efforts to ensure that residents in Santa Cruz County have a voice in building a better METRO.” said Kristen Brown, Vice Chair Santa Cruz METRO
Current law authorizes cities, counties, and specified special districts to increase the sales and use tax applicable in their jurisdiction, also referred to as a transaction and use tax, to fund local priorities including transportation projects and services. Current law also generally caps the total of all transaction and use taxes in a county (or combined tax rate) at 2%. This cap applies countywide, generally meaning that if one locality or special district imposes a transaction and use tax, it limits the ability of another locality or special district that shares the jurisdiction to do so under the remaining portion of the 2% limit. Unfortunately, two localities in the County of Santa Cruz have hit the 2% combined tax rate limit, which will prevent METRO from pursuing a new measure absent new legislation to exempt METRO from the 2% limit.
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Senator John Laird represents the 17th State Senate District, which includes all of Santa Cruz and San Luis Obispo counties, the majority of Monterey County, as well as parts of Santa Clara County. More information on Senator Laird can be found here.