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9A Page 9 'Transportation Funds' Continued from Page 1... This bill provides a preferred way to distribute the funds in California. Funds will be distributed through the Surface Transportation Program (STP). This process has several benefits to cities Including increasing the funding available to cities and providing more flexibility in using the funds. The bill also states the Legislature's intention that at least 40 percent of funding allocated to Metropolitan Planning Organizations (MPOs) be allocated to cities and counties. The League has prepared a summary of the bill's highlights. The figures reported below are rounded. California is receiving a total of $2.57 billion in highway funds. Based on federal law. the state would receive $1.79 billion (70 percent), and MPOs would receive $771 million (30 percent). There is no requirement in federal law that funds be given directly to cities and counties. Existing state law requires that federal highway funds be distributed through the State Transportation Improvement Program (STIP) process. which tends to be more lengthy than the 5TP and would make it difficult for regional and local governments to meet the time requirements in the ARRA. Under ABxxx20, the funds will be distributed through the 5TP process, which allocates more money to MPOs. and increases the flexibility for using funds when compared to the STIP. Using STP formulas, CalTrans will receive $963.7 million (37.5 percent), and MPOs will receive $1.6 billion (62.5 percent). The legislation also states legislative intent that at least 40 percent of the regional funding (totaling $642.5 million) go to cities and counties. If cities and counties don't obligate the funding, the funds will revert back to the region to be reatlocated within that region. ABxxx20 is now awaiting signature by Gov. Arnold Schwarzenegger. 'Hearing' Continued from Page 1... In her opening statement. Assembly Local Government Chair Anna Caballero (O-Salinas) commented on how ARRA funds going to local governments will create jobs, stressing that job creation is the most important thing the government can do to help turn the tide on the economic downturn. Assembly Member Norma Torres (D-Pomona), chair of HCD, said that she is focused on getting these federal funds out the door as fast as possible and asked the panelists to tell legislators what kind of support they need from the state to do this. Greg Jolivette, principal fiscal and policy analyst with the Legislative Analyst's Office told the Assembly members that of the $1 billion the state receives in formula based housing funding, 65 percent will go directly to the local level. Panelists from a variety of jurisdictions and local agencies addressed funding needs and realities at the local level. Stockton Vice-Mayor Kathy Miller testified about how her city will benefit from the funds. The city stands to receive $12.1 million of the $529 million of Neighborhood Stabilization Program (NSP) funds allocated to California. Stockton is known world-wide as the foreclosure crisis' ground zero so while these funds will help the city address this problem it will only make a small impact according to Miller. The clty has allocated $7.2 million for the acquisition of single family homes to renovate and resell. This will cover about 200 homes initially with the goal that the resale of the homes will replenish the funds so more can be purchased and fixed. Miller conveyed the importance of ARRA funds to Stockton. "It's not just about individual buildings or projects. It creates ripple effects in the community," said Miller "Stockton has an unemployment rate of 18 percent so you can't underestimate the impact that these funds will have on a community like Stockton." The San Diego region stands to reap benefits from ARRA funding according to Gary Gallegos, San Diego Association of Governments executive director. He told the committee that ARRA funds allocated for San Diego projects will create 2,600 jobs and also help other regions because many of the products used to complete the projects will come from other areas.. 2