BILL ANALYSIS Ó AB 2175 Page 1 Date of Hearing: May 4, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2175 (Jones) - As Amended March 18, 2016 ----------------------------------------------------------------- |Policy |Transportation |Vote:|15 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill eliminates the statutory transfer of $10 million per year from the Off-HighwayVehicle (OHV) Trust Fund to the General Fund. AB 2175 Page 2 FISCAL EFFECT: Ongoing $10 million loss of General Fund revenue and corresponding increase in OHV Trust Fund revenues. COMMENTS: 1)Background and Purpose. In 2011-12, to help address the state budget crisis, support from the General Fund for the non-OHV state park system was reduced by $11million, annualized to $22 million in the following fiscal year. To achieve a proportionate level of General Fund savings related to OHV state parks, a 2011-12 budget trailer bill include language transferring $10 million annually ($833,000 per month) from the OHV Trust Fund to the General Fund. The author argues that, since enactment of the above diversion, the OHV program has lost $50 million, and contends that, with the General Fund no longer in crisis, it is now time to reverse this diversion of OHV funding. 2)OHV Trust Fund Condition. In 2016-17, and absent this bill, the OHV Fund, as proposed by Governor, will receive $112 million in repaid General Fund loans. Total revenues will be $240 million, an increase of $60 million over the current year amount. Spending from the fund is estimated at $90 million, leaving a $150 million balance. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081 AB 2175 Page 3