AgdaPkt 2005-05-23 - Laserfiche WebLink

Browse Search

¿fA .. ¿ PROP 42 from page 5 ....... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . repairs. The most recent statewide survey of city and county needs for the local system was from the SR 8 (Burton) report done in 1999. This report found an existing backlog of $11 billion in needed repairs, which was estimated to increase by $400 million a year - a $13 billion deficit todav. It's Time to Implement Proposition 42. In 2002, 69 percent of voters approved Proposition 42, expressing their support for dedicating the sales tax on gasoline to state and local transportation pro- grams. However, Prop 42 also allowed diversion of the sales tax on gasoline to the state general fund and appropriation for non-transportation purposes during times when the state was in fiscal difficulty. The funds have been diverted to the state general fund in each of last two fiscal years since Prop 42 passed. The governor's January budget proposed to continue the diversion in FY 2005-06. Further, the governor has indicated his interest in a further diversion in FY 2006-07, followed by his support for a constitutional amendment to make additional diversions more difficult, and repayment of the last two years diversion (without interest) over a 15-year period. We believe that if the state's fiscal condition is improving, restoring at least some portion of the Prop 42 funding is appro- priate (see the Fact Sheet for more information on Prop 42). Local Governments Have Contributed Billions to Help the State and Should Benefit from the State's Improved Fiscal Condition. In the current and 2005-06 budget years, local govern- ,ments are obligated to give a total of $2.6 billion to the state to help resolve its budget crisis. This is in addition to the $1.3 billion VLF gap loan given by cities and counties to the state in the FY 2003-04 budget year, and the transferred Prop 42 funds. Conclusion Local services have been repeatedly sacrificed to help the state through its budget crisis. The League believes that now, as the state has new money available for allocation, the state should keep faith with the Prop 42 voters by restoring badly needed transportation funds for local streets and roads, and ensuring the existing allocation formulas are used. We urge you to wñte or call Gov. Schwarzenegger and your legislators, to ask them to spend some of the additional revenues on badly needed transportation projects; and to allocate these funds on a basis that is consistent with the Prop 42 allocation formula. To access a sample letter, please visit the League's Advocacy Center at www.cacities.ora/ advocacycenter. PROPOSITION 42 FACT SHEET In 2002, 69 percent of voters approved Prop 42. This measure dedicated the sales tax on gasoline to transportation programs. Funds were to be allocated on a 40/40120 split, with 40 percent available to cities and counties for street and road maintenance (split 50-50); 40 percent to the State Trans- portation Improvement Projects (SllP); and 20 percent to transit systems. The amounts at stake are substantial: sales taxes on gasoline produce $1 billion or more annually - an estimated $1.3 billion in , FY 2005-06. Prop 42 allows these funds to be trans:.. ferred to the state general fund and appropri- ated for non-transportation purposes during times when the state was in fiscal difficulty. The funds have been transferred to the state general fund in each of last two fiscal years since Prop 42 passed: . Since Prop 42 went into effect, transpor- tation funding has received only 12 percent of the $2.4 billion anticipated; the bulk of Prop 42 dollars have been diverted to the state general fund to cover other, non-transporta- tion programs. . Cities and counties have lost $382 million over two years for local street and road maintenance programs and even more PAGE 6/PRIORITY FOCUS Continued on Page 7 Visit the league's Official Website .. www.cacities.org