Governor, Legislature Fully Fund Proposition 42
$1.3 Billion Slated for Transportation Projects

July 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.

Finally - A Break in Traffic,
thanks to Gov. Schwarzenegger
and the Legislature . . . read more

"This 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 Transportation California.

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 Lawson. 

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 community. 

California still faces enormous transportation needs and challenges, but the 2005-06 Budget means that we are at last moving in the right direction.

For more information on the state budget, go to http://www.dof.ca.gov/

Transportation California Applauds Governor
For Upholding Proposition 42

May 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 California.

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 repairs. 

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.