BILL ANALYSIS Ó ACA 4 Page 1 Date of Hearing: August 19, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair ACA 4 (Frazier) - As Amended August 17, 2015 ----------------------------------------------------------------- |Policy |Transportation |Vote:|10 - 5 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Revenue and Taxation | |5 - 3 | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: State Mandated Local Program: NoReimbursable: No SUMMARY: This measure allows certain local transportation initiative tax measures to be enacted with a 55% majority instead of a two-thirds majority vote. Specifically, this measure: ACA 4 Page 2 1)Provides that the imposition, extension, or increase of a sales and use tax or transactions and use tax by a city, county, city and county, or special district for local transportation projects requires approval of 55% of those voting on such a measure. 2)Defines a "local transportation project" as the planning, design, development, financing, construction, reconstruction, rehabilitation, improvement, acquisition, lease, operation, or maintenance of local streets, roads, and highways, state highways and freeways, and public transit systems. FISCAL EFFECT: 1)One-time General Fund costs of around $220,000 to include the text and analysis of the measure and arguments for and against the measure in the statewide voter information guide. 2)The lower vote threshold would likely lead to approval of more local measures imposing or extending sales taxes in order to fund local transportation infrastructure. COMMENTS: 1)Purpose. According to the author, "Voters in nineteen counties throughout California have voted to impose special taxes for local transportation projects and programs in their county. Collectively, these counties generate between $3 billion and $4 billion annually - money that is used for transportation projects as identified and prioritized by each county and ratified by the voters. ACA 4 Page 3 "These counties, referred to as "self-help counties," have consistently provided reliable and stable funding for transportation-funding that far outstrips state and federal funding on an annual basis. "Despite the success of these self-help counties, a two-thirds voter approval threshold is a near-impossible hurdle for other counties that are aspiring to be self-help counties. As a result, these counties are deprived of much-needed funding for transportation infrastructure, maintenance, and operations?ACA 4 gives hope to aspiring counties and to existing self-help counties whose existing special transportation taxes are due to expire." 2)Transportation Needs. The biennial California Statewide Local Streets and Roads Needs Assessment, released in October 2014, found pavement conditions are declining and existing funding levels are insufficient to repair or maintain streets, roads, bridges, sidewalks, storm drains, and traffic signs. The report estimated the local system will have a $78.3 billion funding shortfall in the next 10 years. Moreover, the administration is estimating the funding shortfall on the state highway system totals $57 million over the next decade. 3)Prior Legislation. This constitutional amendment is substantially similar to ACA 23 (Perea) of 2012, which died on the Assembly Inactive File. ACA 4 Page 4 Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081