Gino DiCaro

Lawmakers put big bond on November ballot

By Gino DiCaro, VP, Communications

Capitol Update, May 5, 2006

In the middle of the night (Thursday, May 4th), the legislature passed measures to put infrastructure bonds totaling nearly $38 billion on the November 7 ballot.  The breakdown is as follows:  

  • Transportation: $19.9725 billion (SB 1266, Don Perata, D-Oakland)"   
  • Flood protection: $4.090 billion (AB 140, Fabian Nunez, D-Los Angeles)"   
  • Housing: $2.850 billion (SB 1689, Perata)"   
  • Education: $10.416 billion (AB 127, Nunez)

The bond package also contains a constitutional amendment to close the Proposition 42 loophole that allows gas tax dollars to be used for non-transportation purposes.  Specifically, the measure would:  
  • Change the constitution and prohibit the state sales tax on motor vehicle fuels from being used for any purpose other than the existing state and local transportation and transit improvements authorized by Prop. 42.
  • Authorize "loans" only in the case of severe state fiscal hardship, and require full repayment - with interest - within three years of any loans."   
  • Restrict any such loans to no more than twice in any 10-year period.

The Governor issued a press release lauding the legislature's action.
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