State Budget Update - Boater Fees, Delta Conveyance Project

The state’s fiscal year began on July 1 with the Governor and legislative leadership having agreed upon the main budget trailer bill and related budget trailer bills.

Boating Fees & Taxes

Registration fee increase have not yet been raised to resolve the $20 million annual deficit in the Harbors and Watercraft Revolving Fund and the programs and services if supports.

The enacted budget directs the Division of Boating and Waterways to consult with stakeholders to develop and submit a proposal to the Legislature to keep the fund in structural balance on an ongoing basis.

RBOC continues to advocate for updates and efficiencies to state programs financed by boat registration fees to ensure they provide positive benefits to boaters and share costs with other stakeholders where appropriate – prior to an increase in boat registration fees.

The adopted budget incorporates a number of revisions including the financial participation of other beneficiaries in invasive species efforts, and the elimination of funding for the beach erosion program that does not benefit boaters.  Even with these and other actions, the HWRF deficiency has not yet been resolved.

Placing the burden of a $20 million annual deficit solely on vessel registration fees and ignoring the $107 million in annual fuel taxes that are attributable to boats would increase those registration fees by at least 300%.

There are proposals that would increase boat registration fees even more. Legislation has been drafted and is being circulated to amend state law to expand the current quagga and zebra mussel sticker boaters purchase through DMV to include the golden mussel and other invasive species.

Delta Conveyance Project

The Governor’s proposed budget trailer bills to expedite this project have not yet been introduced and were not included in the 20 budget trailer bills that have been enacted thus far.

RBOC continues to oppose the 2 proposed trailer bills, agreeing with the suggestion of the independent and nonpartisan Legislative Analyst’s Office, as well as individual legislators and other stakeholders who are urging the Legislature to defer these trailer bills so that they are not taken up within the budget development process.

The significant precedent-setting policies raised by the trailer bills, together with their potential implications for the recreational boating community and others, are more appropriately developed, deliberated and voted upon within the public, transparent policy committee process that applies to thousands of legislative measures introduced each year.

Additional Budget Actions

Ongoing discussions involving the leadership of the Senate and Assembly, and the Governor, are continuing and could result in additional legislation [termed "budget trailer bills"] revising the budget provisions that have been enacted.

RBOC Urging Governor to Incorporate Boating Community Input into the Budget

As preparations are made for the January release of your proposed state budget for fiscal year 2025-2026, RBOC together with several other organizations collectively representing California’s boaters and boating industry are urging Governor Newsom and legislative leaders to consider and include the recommendations that were developed by the Division of Boating and Waterways [DBW] in State Parks through a comprehensive stakeholder engagement process.

In addition to RBOC, groups joining in the request include our national advocacy partner BoatUS, California Marine Affairs and Navigation Conference, Coastal Conservation Association of California, Marine Recreation Association, National Marine Manufacturers Association, Pacific Inter-Club Yacht Association, and Southern California Yachting Association.

DBW created three ad hoc subcommittees in November 2021 on Revenue Generation, Program Development and Alternative Funding Sources, each chaired by a Boating and Waterways Commission member, staffed by DBW, with stakeholder participation. Each met several times through 2022 and developed recommendations that were submitted to DBW and State Parks on November 17, 2022. The stakeholders participated in a two-year effort and submitted our joint recommendations in writing during this process.

The key expectation was that adoption of the recommendations would reduce costs and increase revenues, thereby reducing or eliminating any increase in the boater registration fees. In January of 2021 the proposal was to raise the fees from $20 to $70 every 2 years. Subsequent proposals called for even more of an increase, from $20 to $80 every 2 years.

We remain concerned that the stakeholder engagement has not continued, that the submitted recommendations have not been implemented, that the projected structural deficit in the Harbors and Watercraft Revolving Fund will remain, and that a proposed Administration solution will be a significant boat registration fee increase that is not supported by the boating community.   

The net effect would be the creation of a financial barrier to healthy on-the-water opportunities for the average California boat owner, whose boat is under 25 feet in length, and even more so for individuals in disadvantaged communities or on fixed incomes.

The average boat owner in California has an income of less than $70,000 per year, among those who are least able to afford the significant 300% increases in their registration fees.  In California, the state collects use/sales tax on the purchase of a boat and annual unsecured property tax on the boat. A significant registration fee increase will essentially make boating an activity that the average Californian family cannot afford.

The number of registered vessels in California has already been decreasing. Several years ago, California ranked third in the number of registered boats by state, today the state is fifth. Local assessors have been drastically increasing the assessed value of vessels for local property tax purposes, regardless of their age. Boaters are being required to spend more money on less effective hull paints.

The hardship of quadrupling fees coupled with severely increased fuel costs would also decrease tax revenue from boaters that fuel boats and the vehicles that tow them off the water, impact on the water or walkable restaurants accessed by boats, shopping by boaters who buy boating and camping equipment, and pay for repairs. This is in addition to the day use and launch ramp fees boaters pay at State Parks. Our communities would pay less fees for fishing and hunting, and fewer launches would decrease launch fees collected and place more hardships on marina owners. 

For these reasons, we reaffirm our support for the attached recommendations that were submitted by the three subcommittees on Alternative Funding, Revenue Generation and Program Development.

Boat Registration Fee Increase Update

RBOC is pleased to report that the efforts of thousands of individual boaters, the boating community and industry, and our national advocacy partner BoatUS have saved California boaters from paying $60 more in state boat registration fees that would have begun July 1 of this year.

The legislation establishing California’s 2023-2024 fiscal year budget did not resolve the ongoing $20 million annual deficiency in the Division of Boating and Waterways’ Harbors and Watercraft Revolving Fund. The issue has not been finally resolved and the issue will be revisited in 2024 when the Legislature convenes the second year of the 2023-2024 legislative session.

What our National Advocacy Partner BoatU.S. has to say about us....

California ranks 4th when it comes to registered boats among our 50 states. Luckily Golden State boaters have a strong voice thanks to their regional advocacy group, a BoatU.S. partner.

Read the article “The Recreational Boaters of California: Advocates since 1968” in the June edition of BoatUS Magazine: click here

The San Diego skyline on San Diego Bay. California is a perennial Top 5 state for pleasure boats with 645,951 registered in 2020. 

RBOC Advocating for Governor and Legislature to Adopt Recommendations on Boating Taxes & Fees in State Budgetnd

California’s boating community and industry together support the dedication and utilization of boater fees and taxes for programs and services that directly benefit boaters.

As a part of our ongoing advocacy efforts on this issue, RBOC and several like-minded boating organizations wrote to State Parks Director Quintero and other officials today to re-affirm our interests, concerns, and requests as the state budget for FY 2023-2024 is being developed prior to the start of that fiscal year on July 1.

We appreciate the decision made by the Governor and Legislature within the state budget for the current fiscal year to refrain from significantly increasing boat registration fees, and in convening a stakeholder process to provide a path to expanded opportunities for all Californians to enjoy on-the-water recreation in the years ahead.

This process provided the opportunity for all interested parties and the state to review the expenditure of more than $100 million each year in fuel tax dollars attributable to boats owners. Within that review, we were able to assess a need to determine the most effective and efficient use of those funds, to identify approaches for increasing the disproportionally small percentage of those monies currently directed to boating programs, and to enhance the financial participation of non-boaters who benefit from the current and future programs.

We anticipate that the Governor’s May Budget Revise may propose one or more solutions to the Harbors and Watercraft Revolving Fund [HWRF] deficiency. We urge the administration and the Legislature to ensure that the recommendations developed through this stakeholder process are incorporated.

They include:

• A comprehensive report on the economic impact of recreational boating in California.

• The enhanced participation and financial contribution of non-boating stakeholders and beneficiaries who benefit from current and future programs and services.

• The enhancement of the statutory authority and role of the Commission to provide not only advice, but also consent on the Division’s loans and grants from the HWRF.

• The identification of approaches that can be taken to meet the new challenges identified through the stakeholder engagement process such as the number of abandoned and derelict vessels not currently addressed by the existing SAVE grant program.

• The enhancement of the Division’s administration of essential programs.

• The identification of efficiencies and improvements to programs that are not attracting the desired number of recipients due to statutory requirements that may be out-of-date, obsolete, or non-competitive.

• Encouragement of Californians to take advantage of the unique and diverse on-the-water opportunities that exist throughout the state.

• A return of a significant amount of the motor vehicle fuel taxes directly generated by recreational boaters to the HWRF.

• An identification and expenditure of other funds for grants directed to beach erosion control.

• As appropriate, a vessel registration fee adjustment that is reasonable and that corresponds to the revenues and savings that are recommended above.

With the dedicated leadership provided by members of the Boating and Waterways Commission and the personnel at the Division of Boating and Waterways, the boating community engaged in the extensive stakeholder process with optimism that the recom-mendations would inform budgetary decisions and policy initiatives to enhance unique California’s on-the-water opportunities for all Californians.

The process concluded at the end of last year with the submission of each subcommittee’s report to the Division of Boating and Waterways and the Department of Parks and Recreation.

We are urging the administration and the Legislature to incorporate the recommendations into the May budget revise and related budget legislation that will be released in the near future.

For a copy of today’s letter: click here

RBOC Directors Lobbying California Legislators on Key 2022 Issues

The voluntary members of the RBOC Board of Directors have begun a series of virtual meetings today with members of the California Senate and Assembly to advocate on several key measures including:

• Boater Fees and Taxes - State Parks & Division of Boating and Waterways

• Outdoor Recreation and Preservation of Water

• Beach Erosion and Replenishment

• Abandoned and Derelict Commercial Vessels

• Human and Medical Waste in Waterways

• Boating and the Sacramento-San Joaquin Delta

• Dredging

For the RBOC Key Issue Update: Click here

250% Boat Registration Fee Hike - Prevented for Now

RBOC appreciates the action taken by Governor Newsom and the State Legislature to remove a proposed 250% increase in boat registration fees from the state budget in response to the serious concerns raised by RBOC, our national advocacy partner BoatU.S., and boating associations including the Pacific Inter-Club Yacht Association, Southern California Yachting Association, Marine Recreation Association, California Association of Harbor Masters and Port Captains, California Yacht Brokers Association, National Marine Manufacturers Association, California Association of Harbor Masters and Port Captains, thousands of California boaters who took action, and several other allied organizations.

"This is the right decision for boaters," responded RBOC President Winston Bumpus. "The further we look into the many different pots where boater-generated fuel tax dollars are placed, the more questions boaters have identified about the fairness of a registration fee increase."

Continued Bumpus: "For instance, boaters pay $107 million each year in fuel taxes to the state, yet only $15 million [14%] is provided to the Harbors and Watercraft Revolving Fund [HWRF] for a number of programs and services including boater education and operator certification, safety and enforcement on the waterways, boating facilities, removal of abandoned and derelict watercraft, and efforts to combat invasive species."

Added David B. Kennedy with BoatU.S. Government Affairs: "This is a great demonstration of the benefits of boaters engaging on issues that matter to their boating. Working with RBOC, over 4,000 messages were sent by BoatU.S. members to the legislature and governor. It's clear their voices were heard."

The final state budget action allocates state general fund dollars to the Harbors and Watercraft Revolving Fund [HWRF] administered by the Division of Boating and Waterways [DBW] for a variety of programs and services that benefit boaters.

RBOC and others will participate in a public stakeholder process DBW will initiate in the near future to develop recommendations to the Legislature for long-term solutions to the deficiencies that DBW and State Parks state that the HWRF is experiencing. Boat registration fees will be part of that conversation, together with efficiencies and improvements to existing programs and revisions to better serve the boating public.

RBOC, BoatUS Yield Results for Boaters in California Budget Negotiations

Boaters speak up for a responsible boat registration fee increase,
funds for AIS prevention and recreational facilities

The voices of recreational boaters, more than 4,000 strong who recently contacted their California state legislators and governor’s office asking for a more responsible and fair boat registration fee increase, have been heard.

During recent budget negotiations, RBOC, our advocacy partner Boat Owners Association of The United States (BoatUS), and a coalition of additional stakeholders won hard-earned concessions that save Golden State boaters money, leads to a path that more equitably funds Aquatic Invasive Species (AIS) programs and beach replenishment efforts, and supports funding for construction, maintenance and operations of public recreation facilities at state water projects.

"We appreciate the support from our partner BoatUS, as well as our coalition partners and the boating community to make the boater's perspective heard in Sacramento.", said Winston Bumpus. RBOC President.

“Advocacy works,” said BoatUS Manager of Government Affairs David Kennedy. “Legislators clearly listened, and we thank them for understanding our needs.”

At issue was a budget proposal on the table for a 250% boat registration fee increase. RBOC/ BoatUS worked to reduce the increase to 100%, which now increases the cost of a two-year California recreational boat registration from $20 to $40.

Also at stake was the California State Parks’ critical Harbors and Watercraft Revolving Fund (HWRF), which supports the state’s AIS efforts as well as boating infrastructure and programs such as launch ramp construction, maintenance, and repair; boating safety; registration; and enforcement programs. As recently as 2019, the HWRF had teetered on insolvency. RBOC and BoatU.S. were able to take a proposed two-year, $20 million spending level and increase it by $10.7 million for the next four years, totaling more than $60 million in HWRF funding, adding stability to the fund.

The state had also been raiding HWRF for beach restoration. “It makes no sense for boaters to carry the burden of beach replenishment for the entire state, and we are glad legislators agreed with us by including a provision that would suspend transfers of HWRF funds to the public beach restoration fund,” added Kennedy.

State legislators are expected to vote on the budget by early June.

RBOC Advocating for Key Changes in Response to Proposed 250% Vessel Registration Fee Increase

RBOC and a number of additional boating community organizations are advocating for key revisions to Governor Newsom’s proposed 250% vessel registration fee increase that would take effect on July 1.

California boaters would see their boat registration fees increase from a minimum of $20 every two years to at least $70 every two years as soon as July 1 if the Governor’s state budget proposal is enacted.

Budget subcommittees in the state Senate and Assembly are discussing this proposal now, and are anticipated to decide on the issue in the next few weeks. as the state budget development process moves forward in the state capitol. RBOC leaders and advocate are lobbying and testifying.

For the February 16 joint boating community letter to the Legislature on this issue: click here

More information:

The Governor’s proposed state budget for the Division of Boating and Waterways [DBW] proposes adjustments to the Harbors and Watercraft Revolving Fund [HWRF].  

The HWRF receives no monies from the state’s General Fund.

It is comprised of boat fuel tax dollars, registration fees, federal monies, and interest payments on loans from the HWRF..

The HWRF support several programs and services that benefit boaters including infrastructure such as launch ramps, education, aquatic centers, local boating law enforcement, the boater certification card, and invasive species prevention and control.

The Governor’s proposal includes an increase in the minimum amount of vessel registration fees, from $20 every two years to $70 every two years, effective July 1. 

This proposed registration fee increase is being considered as the state increasingly dedicates boater fuel tax dollars to the state parks system. and not to the HWRF. This started decades ago, and now totals $107 million each year.

In contrast, only $15 million [14%] of the fuel taxes paid by boaters are placed in the HWRF for the programs and services that directly benefit boaters. 

It is also important to acknowledge that:

• The owners and operators of more than 640,000 registered vessels in California also pay a very significant amount of property taxes to the counties.

• The proposed 250% registration fee increase would extract an additional $20 million from California boaters - most of whom earn under $100K per year and 95% of whom own a small boat that is 26 feet long and smaller. 

• The fee increase be levied during this unprecedented pandemic when individuals are finding outdoor on-the-water recreation to be a safe and enjoyable activity providing significant mental and physical benefits.

• The HWRF also supports programs that are of little or no benefit to boaters including beach restoration.

RBOC, together with other boating organizations, is urging legislators to take one or more of the following actions:

• Reduce the amount of the proposed increase to an amount significantly less than 250%.

• Re-direct a small, yet reasonable portion of the $107 million in annual boat fuel tax dollars to the HWRF.

• Permanently eliminate the authority for HWRF funds to be utilized for beach erosion control.

• Establish an equitable funding structure for the invasive species program that includes other beneficiaries with a proportional financial framework.

• Establish in statute the stakeholder process to be undertaken over the next few years to develop long-term funding approaches to the HWRF.

• Add to the Boating and Waterways Commission’s statutory authority the responsibility to approve loans and grants from the HWRF.

The thought is that, taken together, these actions would provide the state’s boating community with an affirmation that the State of California is taking a balanced, reasonable approach, with increased transparency, to address boating revenues in a manner that respects the proper use of those funds for boating programs and services that directly benefit the boating public.

Boater-Funded HWRF Reform Not Included in May Budget Revise

RBOC is pleased that the Governor’s May Budget Revise announced today for the upcoming fiscal year that begins July 1 does not include feared revisions to the state Harbors and Watercraft Revolving Fund [HWRF] to address stated deficiencies before critical questions are addressed.

We anticipate that this issue will continue to be discussed with the boating community and could be suggested again in either the January 2021 proposal or May 2021 May revise for the state budget for the next fiscal year that will begin on July 1, 2021.

California’s boating community including RBOC and numerous boating industry associations submitted a joint letter on May 4 requesting essential information before fund deficiency solutions are advanced. proposal for the state fiscal year that will commence on July 1, of this year. For more details, see our May 4 post below.

California's Boating Community Requests Essential Information From State Parks Before Fund Deficiency Solutions are Advanced

California’s boating community, comprised of boaters and the boating industry, and as represented by a number of organizations, is quite concerned that the California Department of Parks and Recreation [State Parks] may move forward this year with one or more proposals to revise the Harbors and Watercraft Revolving Fund [HWRF] in a process and with substantive provisions that could be detrimental to the state’s boating community.

Boating stakeholders are being informed that there is a deficiency in the HWRF and that significant revisions are being considered to the boating programs and services that it funds, as well as the sources or amounts of revenues paid into the fund.

To date, we have received no specifics regarding any proposals despite a Constitutional deadline for a completed budget of June 15th. We are concerned that action could be taken in the very near future in conjunction with the release of the Governor’s May Budget Revise, with an accelerated calendar for consideration and adoption of the upcoming state budget for the fiscal year that commences on July 1.

In order to help us engage to the best and most robust way possible, our communities have specific questions about the HWRF and expenditures by the Division of Boating and Waterways [DBW]. While we have received some feedback, we have not received the specific information that has been requested by a number of individuals and organizations both formally in public testimony, and informally in meetings and conversations.

It is critical that this state’s boating stakeholders have accurate information that is essential to our consideration of any proposed revisions. There are approximately 800,000 registered boats in California, and a vibrant $17 billion dollar per year industry. The many forms of boating provide enjoyable, healthy and popular recreational opportunities throughout the state.

The organizations signing onto the letter are [in alphabetical order]:

• American Sportfishing Association

• BoatU.S.

• California Association of Harbor Masters and Port Captains

• California Striped Bass Association

• California Yacht Brokers Association

• Coastside Fishing Club

• Marine Recreation Association

• National Marine Manufacturers Association

• Nor-Cal Guides and Sportsmen’s Association

• Pacific-Inter Club Yacht Association

• Recreational Boaters of California

• Southern California Yachting Association

• The California State Sheriff’s Boat and Watercraft Safety Committee

For a copy of the boating community letter: click here