Subject: TALC Activists-Stop Governor's Raid on Public Transit Dollars
From: Amber Crabbe <[email-masked]>
To: [email-masked]
Date: Fri, 19 May 2006 14:13:56 -0700

TALC Activists-

   There are two important developments up in Sacramento that will
   drastically impact the amount of operating money available to our
   local transit operators in the years to come.  It’s critical in the
   next few weeks to contact your legislators, in addition to those
   mentioned below, and let them know in no uncertain terms that the
   State must commit to provide the promised Spillover dollars, and
   (through AB 343), prevent raids on these transit dollars in the
   future.

   See below for:
   1-Action Itemswhat you can do to help
   2-Sample letter to send to legislators
   3-Update on the Governor’s proposal to rip off public transit not
   just this year, but for the next ten years
   4-Information about AB 343 (Huff), which will protect the Spillover
   from raids in the future
   5-What is the Spillover, and why is it important to our local transit
   operators?
   Thanks,
   Amber Crabbe, TALC Program Director
   1-Action Items to Stop the Raid on State Dollars for Transit
   · Download the letter below, personalize it, and fax it to your   Assembly and Senate Representatives.  (You can identify your   legislators here, and find their contact information on their website:
   [1]http://www.leginfo.ca.gov/y= ourleg.html).

   · Please also let the Chairs of the Budget Committees and
   Transportation= Committees in the Senate and the Assembly know your
   concerns.

   Chair, Senate Budget Committee:
   Senator Wesley Chesbro
   State Capitol Room 5035
   Sacramento, Ca 95814
   Fax: 916-323-6958

   Chair, Assembly Budget Committee:
   Assembly Member John Laird
   State Capitol Room 6026
   Sacramento, Ca 95814
   Fax: 916-319-2127

   Chair, Senate Transportation and Housing Committee:
   Senator Alan Lowenthal
   State Capitol Room 3048
   Sacramento, Ca 95814
   Fax: (916) 327-9113

   Chair, Assembly Transportation Committee:
   Assembly Member Jenny Oropeza
   State Capitol Room 2148
   Sacramento, Ca 95814
   Fax: (916) 319-2155

   · Pass this action alert on to your contacts and email lists! = We
   need to send a clear message to our legislators that we won’t stand   for yet another raid on public transportation.
   
   If you have any questions about this Action Alert or TALC’s
   Spillover= campaign, please contact Amber Crabbe, TALC Program
   Director at (510)= 740-3105 or [email-masked].

   2-Sample Letter to Legislators
   DATE

   LEGISLATOR ADDRESS

   Dear LEGISLATOR:

   On Friday May 12, 2006, the Governor released a proposal within his   revisions to the 2006-07 State Budget that concerns YOUR ORG. = The
   Governor proposes to steal from the Public Transportation Account
   (PTA)= $4.1 billion in “spillover funds” over the next ten years
   to fund debt= service on the proposed transportation bond – which
   only provides $4= billion for transit to begin with.  In 2006-07
   alone, the total cuts= equal nearly $670 million to the PTA and
   transit operations.

   Assembly Member Bob Huff has introduced legislation to protect the
   Spillover= starting next year by requiring any raid on the Spillover
   fund to be repaid= to the PTA within three years.  This will
   discourage such raids in the= first place, and make sure the funding
   is repaid if raids occur.

   I am writing to urge you to:
   · Oppose the Governor’s recent proposal to steal PTA Spillover   dollars for debt service; and
   · Protect Spillover funds from future raids by supporting AB 343   (Huff) or another similar policy change.

   Since fiscal year 2000-01, PTA revenue cuts total close to $1.5
   billion. In= times when the price of gas is high it is essential that
   spillover dollars= be allocated to the PTA to support transit when
   it’s most needed. = Furthermore, Spillover dollars provide
   critically important flexible= funding to local transit operators.  In
   a time when working families= have suffered persistent fare hikes and
   service cuts, these flexible= dollars are needed to keep our transit
   systems running.

   Public transit provides freedom, choice, independence and access for   millions of Californians. Residents around the state depend on public   transportation for a variety of reasons. Transit takes people to
   school, to= work, to medical appointments, services and more.
   Additionally,= Californians with unique needs like seniors, people
   with disabilities,= youth, those without access to a car, and
   households with low and very low= incomes need public transit to
   maintain a high quality of life and= opportunity.  Without transit,
   there is no real access for many to the= daily needs others of us take
   for granted.

   As the budget process continues and you look for consensus with other   legislators, we urge you to consider the many Californians who use
   public= transit, and retain these valuable Spillover revenues for the
   Public= Transportation Account.  To prevent such raids in the future,
   please= support AB 343 (Huff) to make sure public transit gets its
   promised share= of state transportation dollars.

   Sincerely,
   NAME / ORG

   3-Update on the Governor’s Proposal to Rip Off Public Transit
   The Governor’s initial 2006-2007 budget proposal would have   diverted so-called “Spillover” revenue from the Public
   Transportation= Account (PTA) to the General Fund.  The Administration
   in the May= Revise now proposes shifting these revenues to a new fund
   dedicated to= paying part of the debt service on the new
   transportation bond. Based on= current forecasts, the Governor
   estimates that over $4.1 billion in transit= “spillover” revenues
   will be diverted over the next 10 years, with an= initial diversion of
   $669 million in 2006-07, another diversion of $336= million in
   2007-08, and further diversions the following years, in total= $4.1
   billion.

   According to TALC calculations, this year alone, the Bay Area could
   lose= up to $110 million of transit operating funds from the State
   Transit= Assistance (STA) program if the Spillover is seized by the
   Governor.
   
   In 2006-07, the Governor proposes to steal $125 million of the
   Spillover= revenues for Bay Bridge seismic work, and the remaining
   $554 million for= the general fund, paying off debt service on the
   transportation bond if it= passes in November.

   The Governor acknowledged that, “Over the last two decades, the bulk
   of= the spillover funds have been redirected to the General Fund.”
   Yet, the= Administration’s new proposal would divert another
   projected $4.1 billion= in funds away from transit – more than the
   $4 billion included for= transit capital in the new transportation
   bond measure! Thus, the bond deal= actually costs transit money!
   It’s also inefficient, wiping out= funds that transit agencies would
   need to operate any new transit capital,= buses or rail transit
   systems they might fund through the bond= measure.

   Using dedicated transit funds to pay the debt service on a General   Obligation bond measure that is 75% road- and highway-oriented is
   also= inequitable for those who depend on transit. Spillover funds
   help offset= the burden of high fuel prices on residents and transit
   agencies at the= times when Californians rely most heavily on transit
   services to reach= work, school, medical appointments, shopping,
   services and more.

   4-Information on AB 343 (Huff) to Protect the Spillover from Future   Raids
   Recently, State Assembly Member Bob Huff (R-Diamond Bar) introduced   AB 343, which stipulates that, starting next fiscal year, if
   Spillover= funds are redirected away from transit, they must be repaid
   within three= years. TALC will continue to work to restore the
   Spillover funds in this= year’s budget, but AB 343 would protect
   Spillover revenues in future= years, and discourage its seizure in the
   first place.

   UPDATE: we recently heard that this bill may not move forward this
   year, as= the sponsor has agreed to work on Spillover issues through
   the budget= process.  However, we believe that simply addressing the
   Spillover= theft in this year’s budget cycle does not go far
   enoughwe need to= protect these valuable operating dollars in
   future years.  We still= think it is important to show support for
   this bill and the motivation= behind it:  a commitment to protecting
   flexible transit funding.

   5-What is the Spillover?
   Spillover funding was created as part of the Transportation   Development Act (TDA) in 1971. Spillover revenue occurs and is
   transferred= to the Public Transportation Account when collections
   from the sales tax on= gasoline increase at a faster rate than all
   other taxable items. The= spillover amount is variable, but the
   formula was specifically designed to= increase transit funding when
   gas prices are high. This is so transit= agencies can cover their own
   higher fuel costs and meet demands for more= transit from motorists
   priced out of their cars.

   The transfer is based on a calculation required by law to be made by
   the= Board of Equalization and Department of Finance every year. This   calculation compares the revenue estimated to be generated by a state
   sales= tax of 5% on all goods except gasoline to the revenue generated
   by a sales= tax of 4.75% on all goods plus gasoline. (These rates come
   from a= historical agreement between counties and the state to
   preserve revenue= neutrality for the state General Fund.) Per Revenue
   and Taxation Code= section 7102(a)(1), if the amount calculated at
   4.75% is greater, the= difference or “Spillover” is transferred to
   the Public Transportation= Account.

   This money is then split 50/50 between state transit priorities and
   the= State Transit Assistance (STA) Program. STA funds are distributed
   by= formula statewide, and then apportioned regionally to local public
   transit= agencies. While these funds can be used for operations,
   maintenance and= capital, the State Transit Assistance Program is the
   only state program= dedicated to funding transit operations.

   If you have any questions about TALC’s Spillover campaign, please
   contact= Amber Crabbe, TALC Program Director at (510) 740-3105 or   [email-masked].

   For more information, visit the Spillover campaign website:
   [2]http://www.tr= anscoalition.org/c/sus_spill/index.html
   ________________________________________
   Amber Elizabeth Crabbe
   Program Director, Transportation and Land Use Coalition
   405 14th St., Suite 605
   Oakland, California   94612
   phone: 510-740-3105
   fax: 510-740-3131
   e-mail: [3][email-masked]

   ......................................................................
   ......= .....................
   About the Transportation and Land Use Coalition (TALC)
   TALC is a partnership of over 90 groups working for a sustainable and   socially just Bay Area. We envision a region with healthy, walkable   communities that provide all residents with transportation choices
   and= affordable housing. The coalition analyzes county and regional
   policies,= works with community groups to develop alternatives, and
   coordinates= grassroots campaigns.
   To contact TALC:
   405 14th Street, Suite 605
   Oakland, CA 94612
   510-740-3150
   [4]www.transcoalition.org
   ......................................................................
   ..= .........................
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References

   1. 3D"http://www.leginfo.ca.gov/yourleg.html"
   2. 3D"http://www.transcoalition.org/c/sus_spill/index.html"
   3. 3D"mailto:[email-masked]"
   4. 3D"http://www.transcoalition.org/"
   5. 3D"mailto:[email-masked]"