Action Guide November 3, 1998

DESCRIPTION

This is a legislative constitutional amendment that would impose repayment conditions on loans of revenues dedicated to transportation purposes to the state General Fund or to local entities. It would require loans to the state General Fund to be paid back in full within the same fiscal year or not later than 30 days after enactment of the budget bill for the next year, or within three years if the Governor has declared a fiscal emergency or General Fund revenues have declined as specified. It would designate local transportation funds as trust funds, require a transportation purpose for their use, and require repayment of loans of state transportation funds to local agencies, with interest, within four years.

BACKGROUND

In the past, funds raised for transportation purposes have been borrowed by the General Fund or by local agencies for other purposes with no requirements or schedules for repayment, with the result that funding intended for transportation programs has been lost.

IMPORTANT POINTS

• There are great needs in California for improvement and maintenance of both public transit and roads and highways, and the public has supported several kinds of earmarked funds to meet those needs. However, in recent years more than $1 billion of those funds have been siphoned into other programs.

• California's transportation system is overburdened. Roads are deteriorating faster than they can be repaired, and transit systems cannot meet service demands. The public is entitled to get the benefits of improved transportation that they are paying for.

• If funds are borrowed, both the principal and any accrued interest should be repaid within a reasonable time.

Supporters Signing ballot argument for: Kevin Murray, Chair Assembly Transportation Committee Allan Zaremberg, President California Chamber of Commerce Donald R. Doser, Business Manager AFL-CIO Operating Engineers

Opponents Signing ballot argument against: No opposition argument submitted.