Governor, Legislature Fully Fund Proposition 42
$1.3 Billion Slated for Transportation Projects
11 -- Governor Arnold Schwarzenegger today signed the 2005 Budget Act
(SB 77), enacting the earliest California state budget in the last five
years. As the Governor proposed in May, the budget fully funds
Proposition 42, which directs $1.3 billion from the sales tax on
gasoline into transportation projects.
investment in California's transportation infastructure will not only
get people to where they need to go more quickly and safely, but it
will also stimulate the economy, create jobs, lessen traffic, more
efficiently move goods throughout the state and improve air quality,"
the Governor said.
"The announcement of a Budget
agreement between Governor Schwarzenegger and the Legislature is good
news, indeed, for the tens of millions of Californians who daily suffer
the consequences of severe traffic congestion and under-maintained
streets and highways," said Michael Lawson, executive director of
For the first time, all of the sales tax revenues on gasoline will be
used for critical transportation projects, as voters intended when they
overwhelmingly passed Proposition 42 in 2002. This not only means that
an additional $1.3 billion will be available to jump-start stalled
transportation construction, but it is also a recognition that
transportation infrastructure has to take its place atop the California
policy agenda—alongside education—as a first priority issue in the eyes
of Sacramento decision makers and, most importantly, the public.
"The Governor had the courage and the vision to fully fund Proposition
42 in his May Budget revision and that decision was quickly embraced by
Democratic and Republican leaders in the Legislature," said
Much of the credit must also go to the broad coalition that vigorously
supported full funding of Proposition 42. That coalition included
cities and counties, the business community, contractors and building
trades unions, automobile clubs and the entire transportation
California still faces enormous transportation needs and challenges,
but the 2005-06 Budget means that we are at last moving in the right
For more information on the state budget, go to http://www.dof.ca.gov/
Transportation California Applauds Governor
For Upholding Proposition 42
11 -- Governor Schwarzenegger today announced he will not suspend
Proposition 42 for the 2005-06 budget, and that he proposes fully
funding California's critical transportation needs.
Transportation California applauds Governor Schwarzenegger for
upholding Proposition 42. In restoring $1.3 billion for transportation
in the May budget revision, the Governor has recognized the absolute
necessity of addressing a growing mobility and goods movement crisis in
Gridlock, congestion and crumbling streets and highways hurt each and
every Californian. Every year, bad roads cost every motorist hundreds
of dollars in repairs, poor gas mileage and vehicle wear and tear. The
economy is hamstrung by our inability to efficiently move goods from
fields, factories and ports to the marketplace. Poorly maintained
highways threaten life and limb. And hours stuck in traffic take a huge
toll on the quality of life in our communities.
Over the past several years, transportation infrastructure cutbacks
driven by the State's fiscal crisis have deepened this crisis and
weakened our economy, costing tens of thousands of well paying jobs.
And the cost of building and maintaining our transportation
infrastructure increases greatly as we delay needed projects and
We agree with the Governor that full funding of transportation programs
clearly must be a priority. The Governor's decision to restore $1.3
billion in transportation funding and his advocacy of permanent
constitutional protections for Proposition 42 funds are welcome and we
look forward to working with him to permanently close the loophole on Proposition 42.
The Governor is making good on the promise he made in his State of the
State address to restore our transportation system, helping to create
jobs, facilitate goods movement, and improve safety and quality of life
for all Californians.
Governor Schwarzenegger is showing real leadership on the
transportation issue and an understanding that suspending Proposition
42 for a third year would have crippled the State's transportation
programs. Legislators on both sides of the aisle have signaled that
transportation must be a priority in 2005. We are hopeful that this is
an issue where the Governor and the Legislature can come together and
make real progress.