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�,�-s TRANSPORTATION BUDGET UPDATE As state budget negotiations on the local revenues, which will be allocated to the State govemment funding and stability package continue Highway Account for State Transportation Improve- in Sacramento, recent legislative actions regarding ment Program (STIP) projects and TCRP projects Indian Gaming negotiation have resulted in positive for loans previously made from those sources. news for transportation funding. For more information contact Genevieve AB 687 (Chapter 91, Statutes of 2004), by Morelos at gmorelosCa�cacities.orgor 916/65& Senate Pro-Tem John Burton, Assembly Speaker 8254. Fabian Nunez, and Assembly Member Kevin McCarthy ratifies five tribal-state oompacts for the U.S SENATE TO HEAR VOICE following tribes: United Auburn (Placer County) �pMMUNICATIONS BILL IULY 20 Rumsey Band (Yolo County) and three San Diego Tribes: Viejas, Pala, and Pauma, all of which S. 2281, the VOIP (Voice Over Intemet Proto- currently operate casinos. This bill among other �� Regulatory Freedom Act of 2004 is set for positive steps to address Indian Gaming will provide hearing in Congress next Tuesday, July 20, 2004 at a revenue stream for a$1.214 billion bond for 9:30 in Senate Commerce, Science, and Transpor- transportation purposes. tation Business Committee. VOIP is the term generally used to describe the emerging technol- The bill requires actual payment of $97 million �y ��mputer voice communications and associ- annually from the five tribes to finance a$1.214 ated tetecommunications pratocols. billion bond for 2004-05 transportation projects to be repaid over 18 years and to be allocated as Earlier this year the House introduced its follows: version of the bill H.R. 4129 which the League had • $457 million to the State Highway Acxount similar concems. • $290 million to the 141 Traffic Congestion Relief Projects (TCRP) that have an economic Specifically, the League has concerns about S. impact. 2281 because: • $192 million to cities and counties for local street and road projects as advance payment for Public safety concerns are a priority for the loan due in the 200&09 fiscal year from the state and local govemments, yet S. 2281's pre- Proposition 42 suspension for the 2003-04budget emption of state and local authority over E911 year. services and wiretapping laws would undermine • $275 million to the Public Transportation state and local public safety programs. Account for project expenditures. • The elimination of state and Iocal govem- • Advanced funding af State Transit Assis- ment from the regulation of VOIP also eliminates tance loans due for funding in the 2008-09 fiscal me abiliry of states to provide consumer protec- year. tions or promote long-term universal service goals. It should be noted that AB 687 also includes a ' VOIP and any other similar technology provision that would allow up to a$1.5 billion bond should be subject to the same tax collection pro- for transportation purposes, should additional cesses and requirements as traditional telephone revenues become available from future negotia- services, and be required to finance and integrate tions. with the basic operations of the statewide 9-1-1 and E 9-1-1 systems. It is very important to understand that these ' The legislation would jeopardize current bonds will not be sold unless Proposi6ons 68 and Utility User Tax revenues collected on telecommuni- 70 related to Indian Gaming and slated for the cations. November ballot are defeated. For more information on this issue or to down- In addition to the bond monies, the budget is �oad a copy of our opposition letter visit the expected to contain $183 million from general fund League's Federal Priorities Page at www.cacities.org/federal. Visit the League's Official Web Site--www.cacities.org PRIORITY FOCUS/PAGE 3