BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 268|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 268
Author: Assembly Budget Committee
Amended: 9/15/08 in Senate
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
SUBJECT : Transportation: Budget Trailer Bill
SOURCE : Author
DIGEST : This bill provides the necessary statutory
changes in the area of transportation in order to enact the
2008 Budget Act.
ANALYSIS : This is the omnibus transportation trailer
bill and does the following:
1.Sales Tax "Spillover" Revenue . Allocates gasoline sales
tax "spillover" revenue for 2008-09. Of the estimated
revenue of $1.4 billion, $939 million is allocated to the
Mass Transportation Fund to provide General Fund relief
by reimbursing past-year and budget-year general
obligation bond debt for transportation-related bonds
($857 million), and by reimbursing the General Fund for
the 2008-09 Proposition 42 loan repayment ($83 million).
The spillover revenue in excess of $939 million, which is
estimated at $488 million, is transferred to the Public
Transportation Account. The revenues in the Public
Transportation Account are appropriated in the budget
CONTINUED
AB 268
Page
2
bill and support traditional transit operations and
capital, as well as additional General Fund relief.
Note, spillover revenue is distinct from Proposition 42
revenue - Proposition 42 is fully funded in this budget.
2.Proposition 1B Implementation . Implements the Public
Transportation Modernization, Improvement, and Service
Enhancement Account for 2008-09 by using the same
allocation formula that was used with the funding
provided in the 2007 Budget Act. Implements the
State-Local Partnership Program by establishing criteria
for eligibility and allocation - generally, bond funds
will be allocated to local or regional transportation
agencies in proportion to transportation revenue raised
at the local level through voter-approved fees and taxes.
3.Motor Vehicle Account Fees . Increases vehicle
registration fees by $11 to fund the increased cost and
number of California Highway Patrol Officers. The
Administration requested this fee increase to maintain
the solvency of the Motor Vehicle Account. The full-year
revenue gain from the fee increase will be approximately
$490 million.
4.Loans among Transportation Funds . Extends the sunset
until 2011 for short-term cash-flow loans among
transportation funds. Authorizes a three-year loan from
the Traffic Congestion Relief Fund to the Public
Transportation Account not to exceed $60 million.
Extends the sunset until 2011 for short-term cash-flow
loans from the General Fund to the State Highway Account,
and also places a new ceiling of $200 million on such
loans.
5.Fund shift to address Federal Regulations . Authorizes a
shift in the federal funds available for allocation to
regional transportation agencies to the Department of
Transportation (Caltrans) to cover the state's increased
cost of oversight for these local subventions. In
concert with the budget bill, this language allows
Caltrans to meet more stringent Federal Highway
Administration requirements by shifting $2.2 million in
federal funds to the state to cover the cost of 30 new
CONTINUED
AB 268
Page
3
state positions.
6.Clean Renewable Energy Bonds . Authorizes Caltrans to
participate in the federal Clean Renewable Energy Bonds
Program which will provide a $20 million interest-free
loan to Caltrans to fund the installation of solar energy
systems on the rooftops at 70 departmental facilities.
Over a 16-year period, energy savings are expected to
fully repay the bonds and result in a net savings of $5
million to the State Highway Account.
7.Technical Cleanup to 2007 Budget Trailer Bill . Makes
technical changes to the statute that provides budget
allocations to transit operators. The State Controller's
Office has indicated that these technical changes are
necessary to allow them to complete the 2007-08
allocations as budgeted in the 2007 Budget Act.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
DLW:mw 9/15/08 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
**** END ****
CONTINUED