State Budget Doesn’t Raid Transportation Funds—So Far

California's budget process kicked off in January with the release of the governor's budget proposal. The deadline to pass the budget is June 15, but often legislators don't finalize the budget until after the new fiscal year starts in July.

Why does it take so long? Because it's difficult, even in the best of times, to figure out how to spend more than $140 billion on behalf of 38 million people. Years like this one, in which the state faces a historic estimated $16 billion deficit, make those decisions even more challenging than usual.

In the recent past, motorists' interests have taken a backseat because transportation funding-much of which comes from the state sales tax on gasoline and state and federal per-gallon fuel taxes-has been the resource legislators go to when the General Fund is low. Just last year, for example, elected officials took $1.3 billion from transportation coffers to pay for other statewide expenses. Meanwhile, highway and local road conditions, traffic congestion, and public transit have suffered.

This year, Governor Schwarzenegger's initial spending plan doesn't do this. His proposal provides just over $18 billion for transportation, including $4.7 billion in Proposition 1B bond funds that were approved by voters in November 2006. Most of this money will be used to improve highways, local streets, and public transit.

Unfortunately, there's no escaping California's dire financial situation. Proposition 1B bond funds are propping up state transportation spending, which would have declined significantly without them. In addition, the governor's proposal includes an $11 increase in annual vehicle-registration fees to shore up the account that pays for the California Highway Patrol and Department of Motor Vehicles.

All of this could change in early May when the governor releases a revised budget plan and later, when budget negotiations heat up. Then we could see transportation revenue shifted to other priorities.

The state budget process is arduous and time-consuming, but the Auto Club will ensure that legislators pay attention to important transportation issues and that motorists are not unjustly taxed to cover the state's budgetary shortfall.

During the next few years, the road ahead is likely to be pretty bumpy for highway and transit funding. But the Auto Club will do everything it can to make it a smooth trip for California motorists.

Use our Action Alert page to let your legislators know about your views on this topic.