BILL ANALYSIS
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UNFINISHED BUSINESS
Bill No: SB 10XXXX
Author: Ducheny (D)
Amended: 7/23/09
Vote: 27 - Urgency
SENATE FLOOR : Not relevant
ASSEMBLY FLOOR : Not available
SUBJECT : Budget Act of 2009: Transportation
SOURCE : Author
DIGEST : Assembly Amendments deleted the prior version of
the bill expressing the intent of the Legislature to enact
statutory changes 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.
ANALYSIS : This is the omnibus transportation trailer
bill and the amendments do the following:
1. Directs Transit Revenues to Bond Debt Payments . This
bill provides $876 million in new General Fund relief
from transit funds. Of this amount, $561 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
CONTINUED
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funding for the home-to-schools program. All $876
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 rationale 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. 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
California Constitution. Note, the revenues and
expenditures associated with the Aeronautics Account are
associated with local general aviation airports and not
large commercial airports.
4. Driver License (DL)/Identification Card (ID) Fees .
Increases the basic DL fee by $2 dollars, to $30
dollars, and increases other DL/ID fees by $2.
Generally, this fee is paid once every five years. The
Administration had requested a $3 increase in these
fees. This fee increase will be effective January 1,
2010, and will increase Motor Vehicle Account revenues
by approximately $8 million in 2009-10, and by
approximately $16 million in 2010-11, and ongoing. The
increased fee revenue will, in part, support the higher
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cost of the new DL/ID card contract.
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:mw 7/23/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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