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7A INFRASTRUCTURE from page 9 II... II .. . II .. .. .. .. .. . .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. . .. .. . . .p'age 10 These factors make it easy to see why in- creased funding for infrastructure is so crucial for California cities, and is a top priority for the League. It's why the League worked hard this past year to encourage the Legislature and Gov. Schwarzenegger to place the infrastructure funding measures on the November ballot - and why we are urging cities to support all six infra- structure measures: Propositions 1A, 1B, 1C, 10, 1 E (placed on the ballot by the Legislature) and Proposition 84 (placed on the ballot through the initiative process). Your City Wins If Voters Pass These Mea- sures. The following summarizes these mea- sures, and why they are so important for cities. (See also the story on our website: "What Cities Can Do To Help Rebuild California's Infrastruc- ture. ") Proposition 1A - Transportation Funding Protection. Legislative Constitutional Amend- ment. (Prop. 42 Reform) This measure is not a bond, but a constitu- tional amendment designed to "fix" Proposition 42 - the 2002 ballot measures that funded transpor- tation - by oermanentlv dedicating the sales tax on gasoline to transportation purposes (with narrow exceptions). Like the League-sponsored Prop. 1A of 2004, which protected local tax revenues from further state takeaways, this measure will restrict the Legislature's ability to borrow the Prop. 42 funds to the following: · The Governor must declare that the state faces a severe fiscal hardship, and the Legisla- ture must enact a statute authorizing the borrow- ing by two-thirds vote. At the same time, the Legislature must pass a bill specifying that they will repay the loan with interest within three years. · The state can borrow the funds no more than twice in 10 years, and must repay a prior loan before borrowing. Any Prop. 42 transportation funds that were borrowed by the state but not repaid as of July 1, 2007, must be repaid within a 10 year period (no later than June 30, 2016) at payment of no less than one-tenth per year of the total amount owed. The measure also authorizes the Legislature to provide for the issuance of bonds by state or local agencies in accordance with the established Prop. 42 allocation methodology. (See also: .Prop. 42 Funding: We Need to Pass 80th Prop. 1A and 18".) Proposition 1 B - Highway Safety, Traffic Re. duction, Air Quality, and Port Security Bond Act of 2006. Specific allocations benefiting cities include the following: · $2 billion for the Local Street and Road Improvement, Congestion Relief, and Traffic Safety Account, allocated directly to cities and counties for traffic congestion relief, traffic safety, transit, storm damage. maintenance, construction and other projects to improve the local street and road system. $1 billion will go directly to cities (minimum $400,000 allocation), and $1 billion will go directly to counties. · $4.5 billion to Corridor Mobility Improve- ment Account to fund performance improvements on highly congested travel corridors. This includes major access routes to the state highway system on the local road systems that relieve congestion. $1 billion for improvements to State Route 99 traversing approximately 400 miles of the Central Valley. · $3.1 billion for the California Ports Infra- structure, Security, and Air Quality Improvement Act. Of the $3.1 billion, $2 billion is to fund im- provements to trade corridors, $1 billion to State Air Resources Board for emission reductions related to goods movement, and $100 million for the Office of Emergency Services for publicly - owned port. harbor and ferry terminal improve- ments. · $200 million for school bus retrofitting and Continued on Page 11 PAGE 10 - PRIORITY FOCUS October 6, 2006 . Issue #39 Visit the League's Official Website-www.cacities.org