Vote Expected Today on Transportation Tax Swap
(Update 11:18 a.m ) The transportation tax swap measures were passed by the Legislature and will now go to the Governor for action.
Assembly Member Nielsen opposed the measure on the grounds that the measure is a raid on local government funding and is in fact a tax increase without the required 2/3rds vote threshold. Assembly Member DeVore also in opposition because the transportation tax swap is another run around Proposition 42.
Assembly Member Eng spoke in support for the proposal. Prop 42 was a dream that never became a reality, but the tax swap will provide greater certainly for transit operations and also provides general fund relief.
(Update 10:30) Senator Hollingsworth and Senator Huff spoke in opposition to the transportation tax swap package, specifically with respect to the escalator measure that allows the excise tax to keep pace with what Prop 42 would have generated. However, CSAC finds that the only way to keep the swap revenue neutral with respect to local streets and roads is to adjust annually excise tax revenues to what Prop 42 would have generated as the excise tax is a flat at best, if not declining revenue stream whereas Prop 42 provides growing revenues into the future.
Senate AB 8X 6 AB 8X 9 & AB 8X 14 pass and are sent to the Assembly.
(10:00 a.m.) State Senate convened and now in caucus discussing remaining 8th Extraordinary Session bills, including the transportation tax swap. Assembly also convened and is also in Democratic Caucus. We fully expect a vote on the transportation tax swap today by both houses. While local streets and roads are held harmless in the current proposal, we were not successful in mitigating the loss of constitutional protections afforded Proposition 42 monies.