Please note: forwarded message attached 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: http://www.leginfo.ca.gov/yourleg.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 amber@transcoalition.org. 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 enough we 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 amber@transcoalition.org. For more information, visit the Spillover campaign website: http://www.transcoalition.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: amber@transcoalition.org ................................................................................................. 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. 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