AgdaPkt 2004-05-24 - Laserfiche WebLink

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�. A��o MORE ON THE BUDGET: TRANSPORTATION The Governor's May revision to the budget However, as implementation has moved forvvard, brought some good news on the issue of transpor- it has become clear that the anticipated level of tation funding. While his January budget proposed resources available to mov� to the General Fund the suspension of the 2004-05 Proposition 42 will not be reafized, primarily due to lack of transfer with no repayment, the May revise indi- federal access to apportionments, delayed cates that due to the availability of anticipated one federal reauthorization, and the complexity of one-time tribal gaming revenues, the earlier pro- matching apportionments to projects. It is still posed FY 2004-05 suspension of payments will be likely that roughly $200 million will be available converted to a loan to the state, and repayment of from this effort. Accordingly, the Administration is the outstanding General Fund obligations will be modifying its Mid-Year request to retain the accelerated. benefit of these efforts with transportation, rather than accruing any of the benefit to the General. The May Revise proposes to provide $383 Fund. million for transportation purposes, of which $243 miliion will be transferred from the General Fund to The League greatly appreciates the the Traffic Congestion Relief Fund (TCRF) and an Administration's commitment to transportation additional $140 million from the estimated 2004-OS and the significant improvement from the January "spillover' revenues to the TCRF. Budget. However, it is important to note that the proposal does not include any funding for cities The proposed $383 million for transportation and counties for local streets and roads rehabili- would be allocated as follows: tation — meaning a loss of an estimated $180 million-plus for 2004-05 on top of the $188 million $184 million to the State Highway Account loss in 2003-04. for State Transportation Improvement Program (STIP) projects During a briefing on the May Revise from Secretary Sunne McPeak with the Business, $163 million to Traffic Congestion Relief Transportation and HousingAgency questions Projects (TCRP) and were raised about the allocation of future rev- enues, should they become available, and • $36 miilion to the Public Transportation whether the Administration would abide by the Account Proposition 42 formulas and dedicate monies to local streets and roads. The response was "that The May Revision also includes $163 million in if there is additional one-time money from the expenditures for the 2004-OS costs of projects with Indian Gaming negotiations the $1.383 billion loan existing allocations. The 141 TRCP projects will be due in 2005-06 would be accelerated to 2004-OS allocated based on a review of projects by the and the Administration realizes that local streets Business, Transportation and Housing Agency and roads funding remains important." (BTHA), in cooperation with the CTC based on the following criteria: 1) Economic impact, including job creation, 2) Impact on goods movement, and 3) Leveraging of local, federal and private funds. Further, the Administration proposes to continue to support the change proposed in the January For more information on this and budget in accounting from accrual to cash of the ptJ�y � j�� jSit local obligational authority because this change will free up additional resources on a one-time basis. �W��•0�• PAGE 6/PRIORITY FOCUS Visit the League's Official Web Site--www.cacities.org