CA: New battle over where to spend gas sales tax (Prop 42 to be suspended.. again?))

Mercury News ^ | 11/9/04 | Andrew LaMar

[NormsRevenge]

SACRAMENTO - High gas prices are doing more than causing motorists grief -- they are generating a windfall for California's treasury and triggering a battle over how to spend it.

At stake is $1.5 billion from sales taxes on gasoline that voters said in 2002 they want directed to roads, trains and buses. Gov. Arnold Schwarzenegger and the Legislature used the money this year to balance the budget instead.

Meanwhile, the run-up in prices at the pump is fattening the pot. California stands to earn $358 million more from sales taxes on gas in 2004 than it did the year before, according to the Board of Equalization. Yet most of the extra money will not go to highways or transit.

That irks transportation advocates from both parties, who say Schwarzenegger is not heeding voters' wishes. The fallout could prompt another ballot showdown.

``It undermines the credibility of government when solemn promises made to the public are routinely broken by those in power,'' said Sen. Tom McClintock, R-Thousand Oaks. ``This is a particularly stunning example.''

The state charges two taxes on every gallon of gasoline sold in California. The state excise tax is 18 cents per gallon. That money continues to go for transportation purposes.

California also collects a 5 percent sales tax on gasoline. That money has historically funded education, social services and other state programs. In 2002, voters passed Proposition 42, which required all the sales tax go toward transportation in most cases. But the governor and the Legislature, by a two-thirds vote, can suspend that.

[EggsAckley]

Hmmmm.....our ROADS sure could use a little of that.
Oh, well.







hey Norm!

[NormsRevenge]

I smell another initiative, as the article states, to stop the state legislators and Gub from continuing to take money from other funds to keep the state afloat in a sea of debt caused by runaway pension and social program spending.

[NormsRevenge]

You see where some guy in Woodside is getting sued for his peacock herd?

[Reagan Man]

At stake is $1.5 billion from sales taxes on gasoline that voters said in 2002 they want directed to roads, trains and buses. Gov. Arnold Schwarzenegger and the Legislature used the money this year to balance the budget instead.

That would be the Democrat controlled liberal legislature and the liberal Governor.

Politicians really love taxes. Especially liberal politicians like GovRino and his new librat pals.

[fred flinch]

If they have are generating more in tax revenue at the pumps would'nt you think they would lower the gas tax,to give people a relief on the price of gas. All the goverment wants to do is spend money!

[Chode]

same here in NY. the tax is a percentage on the price per gallon, not a set price per gallon... and we don't have a dedicated road tax here either, it ALL gets dumped into the general fund!!!

[BurbankKarl]

no, California will spend the money provided services for illegals.

[WildTurkey]

Another example of how our gas taxes are diverted away from the roads and into socialist spending programs.

[fifedom]

But the governor and the Legislature, by a two-thirds vote, can suspend that. That will require some votes from Republicans. Write the Republicans in the legislature. IN the senate it's Dick Ackerman, State Capitol, Room 305 17821 East 17th Street, Ste 180 Sacramento, CA 95814. In the assembly, it's Kevin McCarthy, State Capitol, Room 3104 Sacramento, CA 94249-0032

[WildTurkey]

But the governor and the Legislature, by a two-thirds vote, can suspend that. That will require some votes from Republicans.

Even if all the republicans voted so, it would not pass the democrat controlled legislature.