County staff: funding gap leaves Santa Cruz roads likely to decline without new revenue

County public‑works staff told the Board of Supervisors Jan. 27 that Santa Cruz County’s 600‑mile road network currently has a pavement condition index (PCI) of roughly 57 — in the lower end of the “fair” range — and that a one‑time change in survey methodology (100% automated survey) accounts for much of the recent PCI increase.

Casey Carlson, senior civil engineer, explained the tradeoffs: minor surface seals cost about $240,000 per mile, while rebuilding severely degraded roads can cost $1.4 million per mile. Staff estimated the system needs about $29.5 million per year to hold PCI at 57; current recurring funding (Measure D, grant cycles, crew patching and utility work) amounts to roughly $8.5 million annually. At current investment levels, staff said, the network will decline several PCI points per year and local roads could fall into the poor range within a decade.

Supervisors pressed staff on storm‑damage costs, culvert repairs and equity (which neighborhoods are prioritized). Staff noted storm and culvert repairs are typically outside the PCI maintenance calculation and often require separate funding. The county also summarized a history of declining purchasing power for fuel‑tax revenues and the end of one‑time utility/ redevelopment infusions, and said changes in asphalt prices have outpaced general inflation.

After extensive questions and public comments, the board directed the CEO’s office to model budget scenarios (including increased general‑fund allocations, parcel assessments, local revenue measures and grant strategies) to show what mix of actions would be required to hold current PCI and to propose staged approaches for closing the gap; staff will return with those scenarios by the county budget cycle in mid‑2026. The motion passed unanimously.

The presentation underscored the trade‑off supervisors face: using scarce local match funds to pull down state and federal grant dollars for major arterials versus preserving Measure D dollars for neighborhood resurfacing. Board members asked staff to post GIS layers and project lists of poor roads to help districts and the public prioritize projects.