Now that the state budget has finally been passed, the California Controller’s Office is working to release payments that were previously held up, including the Highway Users Tax Account payments, according to a press release from the city of Seal Beach.
August HUTA payments were scheduled to be released Thursday, Oct. 28.
However, cities will not receive “Section 2103” Gas Tax funds (a.k.a. the New HUTA or Prop. 42 replacement funds) due to yet another state budget deferral.
The budget package loaned an additional $111.6 million from HUTA to the state general fund, on top of the $650 million loan when the gas tax swap was approved back in March.
This $111.6 million reflects statewide savings in debt service costs, and hopefully will not decrease estimated payments to cities for the coming year.
Seal Beach receives about $49,000 per month of HUTA funds to spend fixing local road problems.
What has changed is that the California Department of Finance issued an order for the entire amount to be taken out of the normal state August payment, leaving no funds available for Section 2103 distribution to cities, counties and the State Transportation Improvement Program.
Cities will still receive Section 2105, 2106 and 2107 funding.
Seal Beach monthly payments for the remainder of the year will be supposedly be increased and adjusted accordingly in compensation for the August deferral.
