Arroyo Grande uses all of its gas tax funding for the maintenance and paving of City streets. The City receives gas tax funding from the State through the Highway Users Tax Fund and SB1 (Road Maintenance and Rehabilitation Account). The State audits Arroyo Grande's use of gas tax revenue to ensure that it is spent on City street and pavement maintenance.
Since July 2018, the City received approximately $690,000-$975,000 annually in gas tax funding from the State. The amount varies based upon changes in the economy and purchase activity by consumers. Within that time, the City has spent between $1 million and $2.9 million annually on street and pavement maintenance. The City has supplemented State gas tax revenue with additional funding sources such as general fund monies.