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<br />7A <br />INFRASTRUCTURE from page 1 ................. to .. .. to . .. .. .. . . .. . . .. .. . .. . . . . . . Page 38 <br /> <br />Your City Wins If Voters Pass These Proposition 1 B - Highway Safety, Traffic Re- <br />Measures. The following summarizes these duction, Air Quality, and Port Security Bond Act <br />measures. and why they are important for cities, of 2006. <br />as you make your choices at the balfot on No- <br />vember 7. For further information, also see the <br />story on the League website: "What Cities Can <br />Do To Help Rebuild California's Infrast~re.. <br /> <br />Proposition 1A - Transportation Funding <br />Protection. Legislative Constitutional Amend. <br />ment. (Prop. 42 Refonn) <br /> <br />This measure is not a bond. but a constitu- <br />tional amendment designed to "fix" Proposition 42 <br />- the 2002 ballot measures that funded transpor- <br />tation - by oermanentfv dedicating the sales tax <br />on gasoline to transportation purposes (with <br />narrow exceptions). <br /> <br />Uke the League-sponsored Prop. 1A of 2004, <br />which protected toeal tax revenues from further <br />state takeaways, this measure will restrict the <br />Legislature's ability to borrow the Prop. 42 funds <br />to the following: <br /> <br />. The Governor must declare that the state <br />faces a severe fiscal hardship, and the Legisla- <br />ture must enact a statute authorizing the borrow- <br />ing by two-thirds vote. At the same time, the <br />Legislature must pass a biN specifying that they <br />will repay the loan with Interest within three years. <br />. The state can borrow the funds no more <br />than twice in 10 years, and must repay a prior <br />loan before borrowing. <br />. Any Prop. 42 transportation funds that <br />were borrowed by the state but not repaid as of <br />July 1, 2007, must be repaid within a 10-year <br />period (no later than June 30.2016) at payment of <br />no less than one-tenth per year of the totaf <br />amount owed. <br /> <br />The measure also authorizes the Legislature <br />to provide for the issuance of bonds by state or <br />local agencies in accordance with the established <br />Prop. 42 allocation methodology. <br /> <br />The transportation bond, Proposition 1 B, <br />contains more than $19 billion in funding to im- <br />prove our highways, our ports, commuter rail <br />systems, and other projects. This bond includes <br />many programs which will help toeal communities <br />across the state: <br /> <br />· The bond contains $2 billion to improve <br />local streets and roads. $1 billion of these funds <br />will be allocated directly to cities through a per- <br />capita formula that guarantees the smalest city 8 <br />minimum of $400,000 to address their most critical <br />transportation needs. <br /> <br />· The state-Jocal partnership program will <br />help us leverage our local transportation funds with <br />$1 billion in state funds. <br /> <br />· The bond can help us reduce traffic c0n- <br />gestion on major local access roads that connect <br />to state highways through the $4.5 billion corridor <br />mobilrty improvement account <br /> <br />· The $1 billion to improve Highway 99 is very <br />important to the economies of central valley com- <br />munities. <br /> <br />· Transportation congestion, goods move- <br />ment and air quality will be improved around our <br />state's ports. <br /> <br />· $4 billion is dedicated to improving public <br />transit. <br /> <br />· There is also funding for seismic repairs to <br />local bridges, improving safety at railroad grade <br />crossings, and other programs. <br /> <br />We can't afford usn to make these invest- <br />ments. <br /> <br />Continued on Page 7 <br /> <br />PAGE 6 . PRIORITY FOCUS <br />November 3, 2006 . ISlue #-43 <br /> <br />Visit the LelgUe's OffIcial Websfte-www.cacities.org <br />