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Home My WebLink AboutAgenda Report - May 18, 2005 E-08r AGENDA ITEM &1& CITY OF LODI %V COUNCIL COMMUNICATION TM AGENDA TITLE: Approve Letter of Support for Restoration of Proposition 42 Transportation Funding MEETING DATE: May 18, 2005 PREPARED BY: Public Works Director RECOMMENDED ACTION: That the City Council approve a letter to the State Governor's Office and our legislators supporting the Governor's recommendation for restoration of Proposition 42 transportation funding. BACKGROUND INFORMATION: The attached material from the League of California Cities describes the background material on this subject. Staff supports this funding as approved by the voters and recommends that a letter be sent to our area legislators and a similar letter be sent to the Governor's Office thanking them for their support. FISCAL IMPACT: FUNDING AVAILABLE Increase in road maintenance funds if implemented. Not applicable. Richard C. Prima, Jr. Public Works Director RCP/pmf Attachments cc: League of California Cities — Debbie Olsen San Joaquin Council of Governments APPROVED: % Blair Kir q, Manager J:\TRANSIT\CLetterofSupport_Prop42.doc \CLetterofSupport_Prop42.doc 5/1 312 00 5 OF EAI OE RN CITIES FOR IMMEDIATE RELEASE May 11, 2005 1400 K Street, Suite 400 • Sacramento, California 95814 Phone: 916.658.8200 Fax: 916.658.8240 www.cacities.org Contact: Megan Taylor, 916.658.8228 Cell, 916.705.6679 League of California Cities' Statement In Response to Governor's Announcement to Fully Fund Proposition 42 (Transportation Funding) Sacramento, CA- "The League of California Cities thanks Governor Schwarzenegger for his leadership, and for his commitment to work with California cities to help build and maintain the state's vitally important transportation infrastructure." "Full funding of Prop 42 is the right decision for the millions of Californians who need and support repairs to the state's badly stressed transportation system, including local streets and roads," said League President Pat Eklund, councilmember in the city of Novato. "It will be good for the economy, and very good for the people of California." "In 2002, 69 percent of voters approved Prop 42, expressing their support for dedicating the more than $1 billion per year in sales tax on gasoline to state and local transportation programs. The diversion of these funds over the past two years has directly cost cities and counties approximately $382 million that the voters intended for local street and road repairs. Additional amounts have been diverted from public transit and state transportation programs. It has added to the daily misery of millions of Californians stuck in traffic on inadequate and poorly maintained streets and roads, or poorly served by existing transit systems. "Local streets and roads urgently need repairs. The most recent statewide survey of city and county needs for the local system was from the SR 8 (Burton) report, done in 1999. This report found an existing backlog of $11 billion in needed repairs, which was estimated to increase by $400 million a year — a $13 billion deficit today." League Executive Director Chris McKenzie said: "The governor has once again proven that he understands and values the role that local governments play in providing the services that Californians need, and upon which the health of our communities depend. California cities appreciate and value the partnership with this governor. " Proposition 42 Fact Sheet In 2002, 69 percent of voters approved Proposition 42. This measure dedicated the sales tax on gasoline to transportation programs. Funds were to be allocated on a 40/40/20 split, with 40 percent available to cities and counties for street and road maintenance (split 50-50); 40 percent to the State Transportation Improvement Projects (STIP); and 20 percent to transit systems. The amounts at stake are substantial: sales taxes on gasoline produce $1 billion or more annually — an estimated $1.3 billion in FY 2005-06. Prop 42 allows these funds to be transferred to the state general fund and appropriated for non -transportation purposes during times when the state was in fiscal difficulty. The funds have been transferred to the state general fund in each of last two fiscal years since Prop 42 passed: • Since Proposition 42 went into effect, transportation funding has received only 12 percent of the $2.4 billion anticipated; the bulk of Proposition 42 dollars have been diverted to the state general fund to cover other, non -transportation programs. • In FY 2003-04, cities and counties lost $188 million in maintenance funding — their direct share of total $1.123 billion sales tax on gasoline. In FY 2004-05, the city/county maintenance funding loss was $194 million, out of $1.1 billion in sales taxes on gasoline. • Cities have been affected negatively in recent years by the reduction in Prop 42 funding for state transportation projects and public transit. For FY 2005-06, sales tax on gasoline is projected to be $1.3 billion or higher due to recent price increases in gasoline. The governor's January budget proposed to continue the transfer in FY 2005-06. Further, the governor has indicated his interest in a further transfer in FY 2006-07, followed by his support for a constitutional amendment to make additional transfers more difficult, and repayment of the last two years' transfer (without interest) over a 15 -year period. If the proposed FY 2005-06 transfer were enacted in the final budget, cities and counties would lose an estimated $253 million (or more) in needed transportation maintenance money. CITY COUNCIL JOHN BECKMAN, Mayor SUSAN HITCHCOCK Mayor Pro Tempore LARRY D. HANSEN BOBJOHNSON JOANNE L. MOUNCE CITY OF LODI PUBLIC WORKS DEPARTMENT CITY HALL. 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209)333-6706 FAX (209) 333-6710 EMAIL pwdept@lodi.gov http:\\www.lodi.gov May 12, 2005 BLAIR KING City Manager SUSAN J. BLACKSTON City Clerk D. STEVEN SCHWABAUER City Attorney RICHARD C. PRIMA, JR. Public Works Director League of California Cities San Joaquin Council of Governments Debbie Olsen 555 E. Weber Avenue 1400 K Street, Ste. 400 Stockton, CA 95202 Sacramento, CA 95814 SUBJECT: Approve Letter of Support for Restoration of Proposition 42 Transportation Funding Enclosed is a copy of background information on an item on the City Council agenda of Wednesday, May 18, 2005. The meeting will be held at 7 p.m. in the City Council Chamber, Carnegie Forum, 305 West Pine Street. This item is on the consent calendar and is usually not discussed unless a Council Member requests discussion. The public is given an opportunity to address items on the consent calendar at the appropriate time. If you wish to write to the City Council, please address your letter to City Council, City of Lodi, P. O. Box 3006, Lodi, California, 95241-1910. Be sure to allow time for the mail. Or, you may hand -deliver the letter to City Hall, 221 West Pine Street. If you wish to address the Council at the Council Meeting, be sure to fill out a speaker's card (available at the Carnegie Forum immediately prior to the start of the meeting) and give it to the City Clerk. If you have any questions about communicating with the Council, please contact Susan Blackston, City Clerk, at (209) 333-6702. If you have any questions about the item itself, please call me at (209) 333-6759. T' Richard C. Prima, Jr. �p Y Public Works Director RCPlpmf Enclosure 0c: Cllr C Wk NCLETTEROFSUPPORT_PROP42.DOC CITY COUNCIL JOHN BECKMAN, Mayor SUSAN HITCHCOCK Mayor Pro Tempore LARRY D. HANSEN BOBJOHNSON JOANNE L. MOUNCE Governor's Office State Capitol Building Sacramento, CA 95814 CITY OF LODI CITY HALL, 221 WEST PINE STREET P.O, BOX 3006 LODI, CALIFORNIA 95241-1910 (209)333-6702 FAX (209) 333-6710 EMAIL pwdept@lodi.gov http:llwww.lodi.gov June 1, 2005 SUBJECT: Proposition 42 Transportation Funding GLAIR KING City Manager SUSAN J. BLACKSTON City Clerk D. STEPHEN SCHWABAUER City Attorney RICHARD C. PRIMA, JR. Public Works Director The City Council of the City of Lodi thanks you for your budget proposal to restore Proposition 42 transportation funding as approved by the voters in 2002. The City of Lodi provides road maintenance and construction within the City and transit services to the greater Lodi area. Both activities are experiencing a shortage of funds to meet the needs of the public. We have nearly doubled our transit fares to help make ends meet while maintaining service levels. As State funding for road improvement projects has essentially been stopped, our Metropolitan Transportation Organization — the San Joaquin Council of Governments — has shifted funding to State Highways and other regionally significant roadways, thus reducing funds available for local roadway maintenance and improvement projects. The promised funding from Proposition 42 — which the City has yet to see — is approximately $200,000 per year, which represents approximately 15% of our normal roadway maintenance funds from gas tax apportionments. Clearly, this is a significant impact to the public, and we urge you to keep faith with the voters who approved this measure. Si r .� n Beckman Mayor JBIRCPIpmf cc: San Joaquin Council of Governments Debbie Olson, League of California Cites Public Works Department J�ITRANSITILPROPOSITION42 GOVERNOR.DOC CITY COUNCIL JOHN BECKMAN, Mayor SUSAN HITCHCOCK Mayor Pro Tempore LARRY D. HANSEN BOS JOHNSON JOANNE L. MOUNCE CITY OF LODI CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209)333-6702 FAX (209) 333-6710 EMAIL pwdept@iodi.gov http:N\www.lodi.gov June 1, 2005 State Assemblyman Alan S. Nakanishi 218 W. Pine Street Lodi, CA 95240 SUBJECT: Proposition 42 Transportation Funding BLAiR KING City M*nager SUSAN J. BLACKSTONI City Clerk D. STEPHEN SCHWABAUER City Attorney RICHARD C. PRIMA, 4R. Public Warks Director The City Council of the City of Lodi urges you to support restoration of Proposition 42 transportation funding as approved by the voters in 2002. Specifically, we ask that you: Support the full application of revenue from sales tax on gasoline for transportation purposes as provided in Proposition 42, including for local street and road maintenance and public transit, consistent with the current Proposition 42 allocation formula • Support a permanent and protected shift of the sales tax on gasoline for transportation purposes Support an obligated repayment of previously suspended Proposition 42 funds with interest The City of Lodi provides road maintenance and construction within the City and transit services to the greater Lodi area. Both activities are experiencing a shortage of funds to meet the needs of the public. We have nearly doubled our transit fares to help make ends meet while maintaining service levels. As State funding for road improvement projects has essentially been stopped, our Metropolitan Transportation Organization — the San Joaquin Council of Governments — has shifted funding to State Highways and other regionally significant roadways, thus reducing funds available for local roadway maintenance and improvement projects. The promised funding from Proposition 42 -- which the City has yet to see — is approximately $200,000 per year, which represents approximately 15% of our normal roadway maintenance funds from gas tax apportionments. Clearly, this is a significant impact to the public, and we urge you to keep faith with the voters who approved this measure. S!'q cereIy, OBeckman Mayor JBIRCPIpmf cc: San Joaquin Council of Governments Debbie Olson, League of California Cities Public Works €3eparknent J:\TRANSIT�LPROPOSITION42.00C CITY COUNCIL JOHN BECKMAN, Mayor CITY O F L O D I SUSAN HITCHCOCK Mayor Pro Tempore CITY HALL, 221 WEST PINE STREET LARRY D. HANSEN P.Q. BOX 3006 BOB JOHNSON LODI, CALIFORNIA 95241-1910 JOANNE L. MOUNCE (209) 333-6702 FAX (209) 333-6710 EMAIL pwdept@lodi.gov http:k\www.lodi.gov June 1, 2005 State Senator Charles Poochigian 4974 E. Clinton, Ste. 100 Fresno, CA 93727 SUBJECT: Proposition 42 Transportation Funding BLAIR KING City Manager SUSAN J. BLACKSTON City Clerk D. STEPHEN SCHWABAUER City Attorney RICHARD C. PRIMA, JR. Public Works Director The City Council of the City of Lodi urges you to support restoration of Proposition 42 transportation funding as approved by the voters in 2002. Specifically, we ask that you: • Support the full application of revenue from sales tax on gasoline for transportation purposes as provided in Proposition 42, including for local street and road maintenance and public transit, consistent with the current Proposition 42 allocation formula • Support a permanent and protected shift of the sales tax on gasoline for transportation purposes • Support an obligated repayment of previously suspended Proposition 42 funds with interest The City of Lodi provides road maintenance and construction within the City and transit services to the greater Lodi area. Both activities are experiencing a shortage of funds to meet the needs of the public. We have nearly doubled our transit fares to help make ends meet while maintaining service levels. As State funding for road improvement projects has essentially been stopped, our Metropolitan Transportation Organization — the San Joaquin Council of Governments — has shifted,funding to State Highways and other regionally significant roadways, thus reducing funds available for local roadway maintenance and improvement projects. The promised funding from Proposition 42 — which the City has yet to see — is approximately $200,000 per year, which represents approximately 15% of our normal roadway maintenance funds from gas tax apportionments. Clearly, this is a significant impact to the public, and we urge you to keep faith with the voters who approved this measure. Si rel , n Beckman Mayor JB/RCP/pmf cc: San Joaquin Council of Governments Debbie Olson, League of California Cifies Public Works Department J:\TRANSIMPROPOSITION42.00C