1A

TRANSPORTATION FUNDING PROTECTION.
LEGISLATIVE CONSTITUTIONAL AMENDMENT.

• Protects transportation funding for traffic congestion relief projects, safety improvements, and local streets and roads.
• Prohibits the state sales tax on motor vehicle fuels from being used for any purpose other than transportation improvements.
• Authorizes loans of these funds only in the case of severe state fiscal hardship. Requires loans of revenues from states sales tax on motor vehicle fuels to be fully repaid within the three years. Restricts loans to no more than twice in any 10-year period.

Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact:

• No direct revenue or cost effects. Increases stability of funding for state and local transportation uses in 2007 and thereafter; reduces somewhat the state’s authority to use these funds for other, nontransportation priorities.