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8A PROP. 42 TRANSPORTATION FUNDING: WE NEED TO PASS BOTH PROP. lA AND ~~ge 2 Most cities know that Prop. 1A on the November ballot deserves their support. This is, after all, the League-supported constitutional amendment designed to "fix" Proposition 42 (the 2002 ballot measures that funded transportation) by penna- nently dedicating the sales tax on gasoline to transportation purposes (with narrow exceptions). But passage of Proposition 1 B on the November ballot is also crucial to cities and counties hoping to receive continued transportation funding in FY 2007-08. That's because the next fiscal year is one of two Prop. 42 "gap" years for local agencies - years in which cities and counties are scheduled to receive no funds under the original Prop. 42 funding fonnula because local agencies received funding for years prior to the implementation of Prop. 42. And the FY 2007-08 gap in Prop. 42 funding would occur even with passage of Prop.1A. More on 'The Gap' Cities and counties were relieved this year - the first of the two "gap" years - when Gov. Schwarzenegger and the Legislature agreed with local agencies that it was important to avoid inter- rupting the local street and road maintenance and repair projects. The state agreed to devote a portion of the state's increased revenues to provide early repayment of previously diverted Prop. 42 funds (FY 2003-04 and 2004-05). This had the effect of "closing the funding gap" for this fiscal year. While next year's state revenues may also be strong, passage of Prop. 18 would potentially answer the question of how to fund the second "gap" year. That's because the measure includes $1 biUion for cities and $1 billion for counties to pay for transportation projects which local agencies designate as priorities. The measure further guarantees that distribution of these funds would include a minimum of $400,000 to each city to allocate according to local priorities. The League is advocating that if Prop. 18 passes, cities should receive 40 percent, or $400 million, of the cities' $1 billion in FY 2007..Q8 to essentially "fill the (Prop. 42) gap." This would ensure that cities have access to consistent fund- ing to carry out projects. The League is then asking for 15 percent each year thereafter for the next four years - again to keep cities funded at a consistent level for multiple years. More Funding Through Prop. 42 in Future Years Passage of Prop. 1A begins to ensure consis- tent funding for cities and counties beyond the FY 2007-08 "gap' year - and according to the original Prop. 42 funding fonnula, at higher levels than earlier years. Specifically, whereas cities are currently scheduled under Prop. 42 to receive an estimated $280 million a year in FY 2008-09 Oust over $8 per capita), they will receive approximately $150 million more than that during the four years in FY 2008-09, or a total of approximately $430 million. ....................... SPREADING THE GOOD WORD: HOW TO TALK ABOUT GOVERNMENT Second Annual Institute for Local Government Symposium Does it sometimes seem that people just don't get how many positive things your city does and the role it plays in the community's quality of life? Do you find people immediately default to negative perceptions about government and those who serve in government? Effectively communicating about the positive role govemment plays was the topic of "How to Talk About Govemment," the Institute for Local Govemmenfs 2nd Annual Luncheon Symposium, held at the League of California Cities Annual Confer- ence in San Diego. Participants heard about the groundbreaking research being conducted by the Demos Center for the Public Sector and The FrameWorks Institute conceming public attitudes about govemment and ways to promote trust and confidence among your constituents. A slide pre- sentation from the symposium is available at www.ca-i1a.org (dick on the symposium button). PAGE 2 . PRIORITY FOCUS Visit the League'S OffICial Website--www.cacities.org