BILL ANALYSIS Ó
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Date of Hearing: August 19, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
ACA
4 (Frazier) - As Amended August 17, 2015
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|Policy |Transportation |Vote:|10 - 5 |
|Committee: | | | |
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|-------------+-------------------------------+-----+-------------|
| |Revenue and Taxation | |5 - 3 |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
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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:
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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.
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"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.
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Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081