Sacramento, CA – Today, the California Association of Port Authorities (CAPA) applauded Governor Gavin Newsom’s release of the May Revision that included a $1.2 billion investment for projects that improve goods movement on rail and roadways at port terminals, including railyard expansions, new bridges, and zero-emission modernization projects.
The Governor’s budget closes a projected $32 billion budget shortfall while protecting critical investments that will help California’s public ports keep up with rising consumer demand and a surge in cargo. The $1.2 billion investment will support infrastructure, technology and data-driven methods that will help get goods moving across the global supply chain.
“I applaud Governor Gavin Newsom for his leadership and initiative to improve California’s supply chain,” said CAPA President and Port of Oakland Executive Director Danny Wan. “Driving good paying jobs and economic growth, California’s seaports play a critical role as our state’s economic engine. We look forward to working with the California State Legislature as it undergoes its review of the May Revision.”
Following two years of unprecedented growth, California’s revenues have fallen short of monthly estimates since the 2022 Budget Act was enacted last June. California has planned for this potential shortfall, with the Governor and Legislature paying down the state’s prior debts, building reserves and prioritizing one-time investments. In October 2022, Governor Newsom announced the investment of $1.2 billion in one-time state funding for port and freight infrastructure projects to build a more efficient, sustainable, and resilient goods movement system.
The 11 major commercial ports that comprise CAPA handle 38% of all containerized imports and 28% of all exports in the U.S. – reaching every corner of the country. Collectively, the California Ports are the most consequential system of ports in the nation.
Additional details on the May Revision can be found at www.ebudget.ca.gov.