Update November 8, 2006
Proposition 1A was passed by 76.8% of voters.
Proposition 1A in Plain English
There are two state taxes on gasoline. The first is an 18-cents per gallon excise tax, or “gas tax.” The second is a 6% sales tax on gasoline transactions. Proposition 42, which voters approved in 2002, dedicated most sales tax money to specifically fund transportation projects. However, since Prop. 42’s passage, the state has used this money twice to help address budget hardships. Proposition 1A will make any future suspensions harder, requiring borrowed funds to be paid back in three years. It will also limit these suspensions to twice per any 10-year period.
Official Title and Summary
Transportation Funding Protection.
Legislative Constitutional Amendment.
- Protects transportation funding for traffic congestion relief projects, safety improvements, and local streets and roads.
- Prohibits the state sales tax on motor vehicle fuels from being used for any purpose other than transportation improvements.
- Authorizes loans of these funds only in the case of severe state fiscal hardship. Requires loans of revenues from states sales tax on motor vehicle fuels to be fully repaid within the three years. Restricts loans to no more than twice in any 10-year period.
Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact:
- No direct revenue or cost effects. Increases stability of funding for state and local transportation uses in 2007 and thereafter; reduces somewhat the state’s authority to use these funds for other, nontransportation priorities.
Analysis
- Official Legislative Analysis, California Legislative Analyst’s Office (PDF)
- In Depth Nonpartisan Analysis, League of Women Voters Ca.
Articles
- State initiative would ban raids on gas tax funds, Money could be used only for transportation. San Francisco Chronicle
- Editorial: No on Proposition 1A. Sacramento Bee
- Another View: Yes on 1A: Close the loophole in gas-tax law. Sacramento Bee
- Closing a loophole in gas-tax spending. Prop. 1A would require repayment of any transportation funds ‘borrowed’ for other uses. Orange County Register
October 20th, 2006 at 12:58 pm
While it is true that gas tax revenues were meant for transportation issues, I don’t see why they should have a special protected status. Education funds were removed by Gov Schwarzenegger to balance the state budget, despite votes by the citizens to protect their share of the budget.
October 25th, 2006 at 9:58 pm
A respondent expresses his puzzlement as to why gas tax revenues should be protected by Prop. 1A in some special way. I suggest he look around at the state of our roads and ask that question again. Consider 1A to be fine tuning of Prop. 42’s original intent.