BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1005
                                                                  Page  1


          SENATE THIRD READING
          SB 1005 (Budget and Fiscal Review Committee)
          As Amended  June 13, 2012
          Majority vote.  Budget Bill Appropriation Takes Effect 
          Immediately 

           SENATE VOTE  :Vote not relevant  
           
           SUMMARY  :  Contains necessary statutory changes in the area of 
          transportation to implement changes to the Budget Act of 2011 
          and includes provisions necessary to achieve $997.4 million of 
          General Fund solutions assumed in the 2012-13 budget package.  
          Specifically,  this bill  :

          1)Transfers funding from the Motor Vehicle Fuel Account to the 
            General Fund, resulting in a General Fund savings of $312.2 
            million in 2012-13 and $128.8 million in savings in ongoing 
            fiscal years.  This provision sunsets after three years and at 
            that time these funds will be transferred to the Highway Users 
            Tax Account.

          2)Transfers additional weight fee revenues to the General Fund, 
            resulting in a $385.2 million in General Fund savings in 
            2012-13 and $47.5 million in General Fund savings 2013-14.  
            Current law permanently directs truck weight fee revenue to 
            the General Fund for eligible debt service in a given fiscal 
            year.  However, since annual truck weight fee revenue 
            currently exceeds eligible debt service, excess truck weight 
            fee revenue has been transferred to the General Fund in 
            2010-11 and 2011-12 as a pre-funding of out-year bond debt.  
            Both types of transfers to the General Fund - either for 
            current-year or for out-year General Obligation bond debt - 
            provide a General Fund budget benefit in the year the transfer 
            is made.  This provision provides the authority in 2012-13 and 
            ongoing to pre-fund out-year debt, to realize additional 
            savings.

          3)Facilitates a $432.2 million loan to the General Fund from the 
            Motor Vehicle Account, resulting in a budget solution of that 
            amount.  The language specifies that the loan be repaid by 
            June 30, 2016.

          4)Allows Caltrans to post advertising for projects on the 
            department's Web site in lieu of trade publications and 








                                                                  SB 1005
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            newspapers.

          5)Contains an appropriation allowing this bill to take effect 
            immediately upon enactment.

           FISCAL EFFECT  :  The provisions of this bill result in $997.4 
          million in General Fund solutions assumed in the 2012-13 budget 
          package.

           COMMENTS  : This budget trailer bill contains transportation 
          statutory changes necessary to implement the 2012-13 budget 
          package.


           Analysis Prepared by  :    Christian Griffith / BUDGET/ (916) 
          319-2099


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