August 15, 2007

March 30, 2006

Redondo Beach Chamber Says: Legislature Stop Stealing Our Money and Fix Our Roads!
 

Proposition on November Ballot will Close the Proposition 42 Gas Tax Loophole So We Can Improve Transportation

There is an old saying “Keep your eye upon the donut, not upon the hole”--generally good advice. The effort to get a constitutional amendment to close a loophole in Proposition 42 asks that we reverse that perspective, and for good reason. Voters must regain what they voted for in 2002 by fixing a small provision that allows the state legislature to divert funds from taxes designated for use to fix our transportation infrastructure.

Nearly 70% of California voters overwhelmingly passed Proposition 42 in 2002 – dedicating the existing state sales tax on gasoline to fund transportation projects like congestion relief, road repairs, plus transit and safety improvements. What was overlooked in Proposition 42 was a provision that allows the legislature and Governor to divert funds to non-transportation state expenditures in the State General Fund. It was only intended to be used during fiscal emergencies. Unfortunately – but not surprising – this “loophole” has been liberally used by legislators who have repeatedly diverted the gas tax revenues to fund other projects in the general fund not related to transportation improvements.

In fact, in two out of the last three budget years nearly $2.5 billion has been diverted to non-transportation expenses. This loophole in Prop. 42 has been abused and the will of the voters is not being upheld. As a result, state and local agencies have had to delay or stop many critical safety improvements, congestion relief projects, road repairs and other transportation needs.

Roads are crumbling, highways remain congested, and the most hazardous corridors and intersections are not being improved. California has the worst roads in the nation, according to a recent report by The Road Information Program. Three out of 10 of the state's overpasses and bridges are structurally deficient or functionally obsolete. Almost half - 49 percent - of California's urban freeways are considered congested.

This transportation crisis is threatening our economy and the safety and quality of life of every Californian.

A broad-based coalition which consists of the California Chamber of Commerce, California Alliance for Jobs, League of California Cities, California State Association of Counties, California Business Roundtable and numerous other business, labor, local government, taxpayer watchdog and community groups is collecting signatures to qualify a constitutional amendment for the November 2006 ballot. If passed, this measure would close the Prop. 42 loophole, uphold the will of voters, and ensure once and for all that the existing sales taxes paid at the pump are used for transportation improvements.

This measure would prevent the legislature and Governor from diverting the sales taxes on gasoline to non-transportation expenses. It also requires the State to reimburse the $2.5 billion in funds previously diverted. It responsibly allows 10 years for repayment to avoid any immediate fiscal impact.

The measure will not raise taxes. it simply ensures that the gasoline sales tax we already pay at the pump will be used for transportation projects to improve safety and help reduce congestion.

By closing the Prop. 42 loophole, this measure would finally provide a stable funding source for state and local agencies responsible for transportation improvements. We need to support this much needed revision, back at the voting booth where we can confirm the will of the people and improve traffic now.
 

Click here to contact the Redondo Beach Chamber for more information

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