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PROP. 42 from page 1 . . . . . . . . . . . . . Called "Californians to Improve Traffic Now," the coalition has been working for many months to draft an initiative that would prevent the governor and Legislature from diverting the sales taxes on gasoline to non-transportation state expenses. The measure also requires the state to reimburse $2.5 billion in funds previously diverted from transportation projects to pay for other state program needs. It allows 10 years for repayment to avoid any immediate fiscal impact. The League board of directors last year approved League participation in the coalition effort to stabilize Prop. 42 transportation funding. League regional representatives will help to organize press conferences to kick off the signa- ture gathering effort. City officials will be contacted by their League regional reps, and will be provided with information that will explain where and how they can support the signature gathering effort. As with any cam- paign activity, city officials can participate only on their personal time, and without using any public resources (city premises, equipment, supplies, s- mail systems and the like). Prop. 42 Funds Vulnerable to Transfer Prop. 42 passed in 2002 with the support of 69 percent of Califomia voters. The measure dedi- cates the existing state sales tax on gasoline to fund transportation projects like congestion relief, road repairs, transit and safety improvements. The measure includes a provision, however, that allows the Legislature and governor to divert funds to non-transportation expenses during fiscal emergencies. That provision was used in two of the last three budget years, resulting in the diver- sion of $2.5 billion in these gas taxes to non- transportation state expenses. The lost funds for cities and counties has totaled $384 million. As a result, state and local agencies have had to delay or stop many critical safety improve- ments, congestion relief projects, road repairs and other pressing transportation needs. SA Page 20 The governor and Legislature fully dedicated Prop. 42 funding to transportation in the current fiscal year, and propose to do the same next year. Cities and counties are receiving $254 million this year (split evenly between them) for maintenance and repair of local streets and roads. This amount is proposed at $255 million for next year. The Prop. 42 formula calls for the city-county share to increase to $560 million in FY 2008-09, on an ongoing basis. ....................... LEAGUE SUPPORTED PILOT PROjECf BILL PASSES OUT OF THE ASSEMBLY A bill that would establish a pilot program to track public officials' actions on potential financial conflict of interests has passed out of the State Assembly on a bipartisan, 57-18 vote, with support from the League of California Cities. Assembly Bill 1558 (Wolk-Davis) now heads to the Senate Rules Committee to begin its review by the upper house. AB 1558 would establish a "pilot project" by the Fair Political Practices Commission (FPPC) that will allow the FPPC to issue opinions with regard to financial interests of public officials who vote on employee contracts. AB 1558 will begin the process of the FPPC, implementing a better system of tracking and reporting anyone who stands to benefit from a contract made by them in their official capacity as a city official. By enacting a pilot program, it allows for any glitches to be worked out prior to the program possibly becoming law. The League supports this bill as a pilot project. The FPPC shall have "non-enforcement" authority and cannot mandate local agencies to participate, but will require consultation with the local city or district attorney prior to proceeding with a draft opinion. Visit the League's Official Website-www.cacities.org ..- . .. PRIORITY FOCUS. PAGE 5 February 3, 2006 . Issue '5 ."-,. ,..,,^,.., ...--...,-^",^,.....---"----.-..,.--,..----------------