TRANSPORTATION FUNDING. USE OF REVENUES FROM SALES AND USE TAXES ON VEHICLE FUEL. INITIATIVE STATUTE.

TRANSPORTATION FUNDING. USE OF REVENUES FROM SALES AND USE TAXES ON VEHICLE FUEL. INITIATIVE STATUTE. Beginning July 1, 2006, the measure makes permanent the current percentage allocations of revenues from sales and use taxes on motor vehicle fuels to the Transportation Investment Fund for distribution to the Department of Transportation, counties, and cities as specified. Revenues are to be used for highway and street construction, repair, and maintenance and public transportation purposes. Places conditions on loans of these funds to the General Fund. Currently, these allocations are scheduled to end on June 30, 2006. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: This measure redirects General Fund revenues to transportation purposes in the amount of about $1.4 billion in 2006-2007 and increasing annually thereafter. Corresponding reductions in General Fund revenues available for non-Proposition 98 expenditures