BILL ANALYSIS �
SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
Mark Leno, Chair
Bill No: AB 1465
Author: Committee on Budget
As Amended: June 13, 2012
Consultant: Mark Ibele
Fiscal: Yes
Hearing Date: June 14, 2012
Subject: Various Transportation Funds
Summary: This bill provides for budgetary solutions by
allowing for borrowing from and the shift in certain
revenues to the General Fund, as well as other related
provisions.
Background: Current law allows for truck weight fees to be
transferred to the General Fund to pay for eligible debt
service and provides that gasoline excise taxes backfill
the State Highway Account for the reduction in revenues.
Current law allows for General Fund borrowing from
available resources of specified funds. Department of
Transportation must publish information about projects in
newspapers or trade publications.
Proposed Law: This bill is the Transportation Trailer Bill
for the 2012-13 budget and includes provisions necessary to
provide for General Fund solutions. The bill includes the
following provisions:
1. Transfers Weight Fees to the General Fund. The
bill would result in the shift of additional truck
weight fees to the General Fund to pre-fund out-year
debt service for eligible General Obligation Bonds.
Current law allows for truck weight fees to be
transferred to the General Fund to pay for eligible
current debt service and the bill would extend the
allowed transfer to include future bond payments.
Both types of transfers, current year and out-year,
provide for General Fund budget benefit the year that
the transfer is made. This shift in weight fees
results in additional General Fund relief of $385
million in the budget year.
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2. Transfers Certain Revenues to the General Fund.
The bill would direct that excise taxes that are
generated from gasoline purchased for certain uses be
directed to the General Fund for the next three years.
Beginning in 2015-16, these funds will be transferred
to the State Highway Account. This provision results
in additional General Fund relief of $184 million in
2011-12 and $128 million in 2012-13.
3. Provides for A General Fund Loan from the Motor
Vehicle Account. Allows for a loan to the General
Fund from the Motor Vehicle Account of $432 million,
resulting in a commensurate General Fund solution.
The bill directs the loan to be repaid by June 30,
2016.
4. Allows Website Postings by Department of
Transportation. The bill would allow Department of
Transportation to post to its website, public
advertising notices regarding projects, in lieu of
publication in newspapers or trade publications
Fiscal Effect: The bill provides for General Fund relief
of $1.1 billion assumed in the 2012-13 budget package.
Support: Unknown
Opposed: Unknown
Comments: This bill provides the necessary statutory
references and changes to enact the 2012-13 budget
components related to transportation funds.
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