AgdaPkt 2008-06-09 - Laserfiche WebLink

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8A Page 4 Proposition 1 B Funds. As originally outlined in the Governor's January budget, there is no additional allocation of Prop. 1 B Local Streets and Roads funds to cities for FY 2008-09. As of May 15, the Department of Finance reports that $339.5 million has been allocated to 323 of California's 478 cities (from the total FY 2007-08 allocation of $550 million). The May revise contains no major alterations to any of the additional proposed allocations of Prop. 1 B transportation funds that were listed in the Governor's January budget. "Spillover" Funds from Gasoline Tax Revenues. Due to the increase in gas prices, the "spillover" monies collected from gasoline sales tax revenues are $286 million higher than estimated in the Governor's proposed January budget, for a total of $1.177 billion. The spillover is produced when the growth in revenue collected from sales taxes on gasoline sales taxes is higher than the growth in revenue derived from all other taxable sales. An explanation of the "spillover" is posted online at www.californiacitvfinance.com/SpilloverFAQ . pdf. The May revise allocates $306 million to the Public Transportation Account (PTA) with remaining funds from the "spillover" revenues going to K-12 home-to-school transportation and debt service on current and prior year transportation-related general obligation bonds. The California Transit Association (CTA) provides an analysis of the PTA allocation for FY 2008- 09, concluding that the allocation to transit should be greater than the amount stated in the May revise based on applicable statutory formulas and the historic intended use for these funds. The CTA analysis of the PTA FY 2008-09 allocation is available at www.cacities.orq/resollrce files/26813.2008-09MavRevision.pdf. HousinQ The May revise contains no major alterations to any of the additional proposed allocations of Prop. 1C housing-infill funds that were listed in the Governor's January budget. Resources and Environment The Govemor's revised budget proposes an additional $13.3 million in funding for the Department of Parks and Recreation to provide funding for 48 state parks. The proposal provides $11.8 million from the General Fund plus $1.5 million generated by increasing state park fees ($1-$2 per person at selected parks). The California Air Resources Board (ARB), under the revised budget, would transfer $48.7 million from its Air Quality Improvement Fund to finance loans and loan guarantees to assist truck retrofits proposed by ARB. This would be a one-time transfer. Local government fleets, to the extent that they qualify under the new regulations, may qualify for the loans and loan guarantees offered by ARB. Propositions 84 and 1 E. The May revise makes several minor adjustments related to specific projects funded by Props. 84 and 1E. Debt Repavment and Local Government Finances Reimbursement State Mandates Program The Governor's January budget proposed payment of state mandates to local government as part of the repayment of mandates for costs incurred prior to July 1,2004. Instead, however, the revised May budget would defer $75 million in state mandate repayments. Cities receive about 30 percent of mandate repayments. 4