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Transportation Funding Protection
Legislative Constitutional Amendment.

THE QUESTION

Should the California Constitution be amended to further protect transportation-related state sales tax revenues from general-purpose use and require that any funds borrowed be repaid to the transportation fund?

THE SITUATION

Until 2002, most of the state sales tax on gasoline was not used for transportation purposes. Instead, these revenues were used for education, health, social services, and corrections.

Proposition 42, approved by voters in 2002, amended the state Constitution to dedicate the revenue from the sales tax on gasoline to transportation uses, except in a fiscal emergency.

Since 2002, the state has suspended the Proposition 42 transfer twice. In 2003-04, the transfer was suspended partially, and in 2004-05, the full amount of the transfer was suspended. Existing law requires that these suspended amounts be repaid with interest.

THE PROPOSAL

This measure amends the state Constitution to further limit the conditions when the Proposition 42 transfer of gasoline sales tax revenues for transportation uses may be suspended.

FISCAL EFFECT

This measure would not increase or decrease overall revenue. By limiting the frequency and the conditions under which Proposition 42 transfers may be suspended over a ten-year period, the measure makes it more difficult to use gasoline sales tax revenues for non-transportation purposes when the state experiences fiscal difficulties. As a result, the measure would increase the stability of funding to state and local transportation infrastructure.

WHAT A YES OR NO VOTE MEANS

A YES vote means that the California Constitution will be amended to further limit suspension of the transfer of the state gasoline sales tax from the General Fund to the transportation fund.

A NO vote means that the California Constitution will not be amended to further limit suspension of the transfer of the state gasoline sales tax from the General Fund to the transportation fund.

SUPPORTERS SAY

• Prop 1A closes the loophole in the current law and ensures that the gas taxes you already pay are spent only on transportation projects.
• It means a stronger economy, with emphasis on infrastructure to move people and goods throughout the state.
• It ensures a stable source of long-term funding to improve transportation.

OPPONENTS SAY

• In bad years, the Legislature and the Governor need the flexibility to shift funds temporarily to ensure that education receives at least its minimum guarantee.
• Proposition 1A will put still more of California's budget on "automatic pilot."
• Strong protections for highway and pothole funds are already in Proposition 42.

FOR MORE INFORMATION

PRO  916-448-1401, www.ReadForYourself.org

CON  916-319-2045