Governor Schwarzenegger, satisfied with actions by the Legislature, signed the two-bill package that will bring significant change to how transportation is funded. Proposition 42 is no more. The repeal of the sales tax on gas, and thus Proposition 42, will be replaced by an equivalent amount of increase in the per gallon gas tax.
The Legislature adjourned the Eighth Extraordinary Session last week. The remaining legislation on the Governor’s desk (AB X8 6 and AB X8 9) contains the transportation tax swap package. The Governor has sent a letter to legislative leaders expressing his plan to veto the measures as the special session expires this evening. Could there be a record-breaking ninth extraordinary session coming our way?
(Update 11:18 a.m ) The transportation tax swap measures were passed by the Legislature and will now go to the Governor for action. Assembly Member Nielsen opposed the measure on the grounds that the measure is a raid on local government funding and is in fact a tax increase without the required 2/3rds vote threshold. Assembly [...]
(UPDATE – 3/4/2010) The clean-up bill, ABX8 14, passed the Senate and the Assembly and will be sent to the Governor. As a reminder, this measure authorizes counties and cities to utilize Prop 1B funds during the HUTA deferrals and requires that such loans be repaid to the Prop 1B account with interest. Governor Schwarzenegger [...]
The Legislative Analyst’s Office (LAO) has released its analysis of the state’s transportation budget, including the governor’s proposals, proposed public-private partnerships, and High Speed Rail Authority.