Transportation Funding. Initiative Constitutional Amendment and Statute.

Prohibits retention of funds earmarked for the Transportation Investment Fund in the General Fund for use unrelated to transportation after 7/1/08. Requires repayment by 6/30/17 of transportation funds retained in the General Fund in years prior to 2007-08. Eliminates General Fund borrowing of specified transportation funds, except for cash-flow purposes (repayment required within 30 days of adoption of budget); current law allows borrowing for three years where Governor declares transfer would cause significant negative fiscal impact on governmental functions and Legislature enacts authorizing statute. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: No revenue or cost effects. Increases stability of funding to transportation in 2007-08 and thereafter; reduces somewhat the state’s flexibility to use specified transportation funds for other (nontransportation) activities. (SA2005RF0123