BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 190|
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THIRD READING
Bill No: AB 190
Author: Assembly Budget Committee
Amended: 6/24/09 in Senate
Vote: 27 Urgency
PRIOR VOTES NOT RELEVANT
SUBJECT : Budget Act of 2008-09: Transportation
SOURCE : Author
DIGEST : Senate Floor Amendments of 6/24/09 delete the
prior version of the bill expressing the intent of the
Legislature to enact statutory revisions relating to the
2009 Budget Act. This bill now provides the necessary
statutory changes in the area of transportation in order to
amend the 2009 Budget Act, as specified below.
ANALYSIS : This is the omnibus transportation trailer
bill and provides the following:
1.Shift Transportation Revenues to Bond Debt Payments .
Shifts $986 million in gasoline excise tax revenue from
cities and counties to the General Fund for reimbursement
of transportation-related general-obligation bond
payments. In 2010-11, an additional $745 million will be
shifted for the same purpose, but in 2011-12, and
thereafter, the full current-law allocation would be made
to cities and counties. The amount shifted is within the
limit set by Article XIX of the Constitution - no more
CONTINUED
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that 25 percent of specified transportation revenue can
be directed to bond debt service. Additionally, this
bill provides $951 million in new General Fund relief
from transit funds. Of this amount, $636 million is new
transit revenue beyond the January revenue forecast, and
is primarily based on higher gasoline prices. The
remaining $315 million is related to a cut in transit
funding for the home-to-schools program. All $951
million reimburses the General Fund for
transportation-related bond debt service.
2.Proposition 1B Extension . Extends the period for which
cities can encumber bond funds appropriated in the 2008
Budget Act. Generally, cities would encumber funds by
signing a construction contract for improvement of local
streets and roads. The 2008 Budget Act included language
requiring cities to encumber bond funds by June 30, 2009.
If bond funds are not encumbered by that date, the funds
must be reverted to the State. This bill extends the
period for local governments to encumber funds until June
30, 2010. One rational for this extension is that the
State's fiscal condition last winter and spring delayed
the issuance of bonds and allocation to local
governments. With the allocation of bond funds uncertain
for much of the fiscal year, local governments were
hampered in advancing construction projects.
3.Project Initiation Documents . Requires the Department of
Transportation (Caltrans) to be reimbursed by the local
government for work performed at the request of locals
related to preparation or review of a project study
document (PID). In the case of a locally-funded project
on the state highway system, Caltrans may prepare a PID
at the request of a local government, or the local
government may contract with a private firm to prepare
such a study. In either case, Caltrans must review and
approve a PID for a locally-funded highway project. In
the past, Caltrans has funded the cost of all PIDs with
State Highway Account funds. The revised budget for
2009-10 zero-bases PID workload and reduces staff in
conformance to the new workload figure. Additionally,
the workload associated with locally-funded projects is
shifted from the State Highway Account to local
reimbursement.
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4.Local Airport Grants . Suspends State grants to local
general aviation airports in 2009-10. Suspension of the
grant programs results in savings of $4.0 million and
this amount is transferred by this bill from the
Aeronautics Account to the General Fund. Funds in the
Aeronautics Account are derived from taxes on jet fuel
and are considered a tax instead of a fee. These funds
are not restricted in expenditure by Article XIX of the
Constitution. Note, the revenues and expenditures
associated with the Aeronautics Account are associated
with local general aviation airports and not large
commercial airports.
5.Technical Cleanup to 2008-09 Budget Trailer Bill . Makes
technical changes to increase the transit "spillover"
funds that are directed to the Mass Transportation Fund
instead of the Public Transportation Account in 2008-09.
This conforms with other actions taken in February to
amend the 2008 Budget Act.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
DLW:nl 6/23/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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