Laserfiche WebLink
<br />6-28 <br />Page 2 <br /> <br />A broad-based coalition of business, labor, local government, and community leaders is in <br />the process of collecting signatures to qualify a constitutional amendment for the November <br />2006 ballot. The League of California Cities endorses this measure, and has authorized <br />League participation in the coalition effort to stabilize Proposition 42 transportation funding. <br /> <br />If passed by the voters, this measure would close the Proposition 42 loophole, uphold the will <br />of voters, and ensure that the sales taxes on gasoline are used for transportation <br />improvements. This measure would prevent the governor and legislature from diverting the <br />sales taxes on gasoline to non-transportation expenses. <br /> <br />The measure also reinforces the requirement for the State to reimburse the $2.5 billion in <br />funds previously diverted, and specifies a time frame of up to 10 years for repayment to <br />spread out the fiscal impact on the state. <br /> <br />By closing the Proposition 42 loophole, this measure would ensure a stable funding source <br />for state and local agencies responsible for transportation improvements, allowing them to <br />repair the most hazardous intersections and unsafe highways in California, relieve traffic <br />congestion through freeway widening, and implement much-needed road repairs, transit <br />projects, and intersection improvements. <br /> <br />Alternative <br />The City Council could choose not to adopt the resolution, and not go on record in support of <br />the placement of this proposed constitutional amendment on the November 2006 statewide <br />ballot. <br /> <br />Fiscal Impact <br />There is no fiscal impact associated with this resolution, However, if placed on the ballot and <br />passed by the voters, this constitutional amendment would have the effect of protecting the <br />already-anticipated revenue to the City, an estimated 20-year total of between $16 million <br />and $19 million, including the required r,eimbur,ementFf' ~ funds previously diverted. <br /> <br />, ~ (1~' <br /> <br />~ Ed"Everett <br />Public Communications City Manager <br />Manager <br /> <br />Attachments <br />Draft Resolution <br />