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Motor Vehicle Account faces shortfall; administration proposes $166 million one‑time backfill from GGRF and Air Pollution Control funds
Summary
Officials said the Motor Vehicle Account faces an operational shortfall as expenditures outpace revenues; the administration proposed a $166 million one‑time backfill from the Greenhouse Gas Reduction Fund and the Air Pollution Control Fund for 2025‑26.
Department of Motor Vehicles and Department of Finance officials told the Senate Budget Subcommittee No. 5 that the Motor Vehicle Account (MVA) will face operational shortfalls in 2025‑26 because expenditures are outpacing projected revenues.
Bowen Peterson outlined MVA current projections, saying 2025‑26 revenues are expected at roughly $5.0 billion, primarily from a $71 vehicle registration fee and a $32 California Highway Patrol (CHP) fee, while expenditures are projected near $5.2 billion with CHP and DMV…
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