'Protect Prop. 42' Rally Held at State Capitol

At a rally at the State Capitol today, representatives for the Save Proposition 42 Coalition spoke about efforts to permanently protect Prop. 42, which provided that the sales tax on gasoline would go to transportation programs.

Speakers at the rally included Jim Earp, executive director of the California Alliance for Jobs; Julia E. Greene, executive director of the San Joaquin Council of Governments; Jay Hansenof the Building and Construction Trades Council of California; and Jim Wunderman, executive director of the Bay Area Council

Michael Lawson, executive director of Transportation California, a collaboration of business, labor and government organizations interested in promoting sound transportation policies, made the following comments at the rally.

After several years of siphoning off highway and transit dollars to the general fund, there's nothing left in the tank for even much-needed safety and basic maintenance projects.

Transportation programs are stalling out statewide. The CTC has made no new STIP allocations since December 2002. Gas taxes are not keeping up with the demand being exerted on our state's transportation system.

According to the Legislative Analyst's Office, because gasoline taxes have not increased since the mid-1990s, inflation-adjusted gas tax revenues are projected to decline 8 percent from 1998-99 through 2004-05. Over the same period, vehicle miles traveled are projected to increase by more than 15 percent.

What that says to me is that we should be putting more money into our transportation system, not taking it out. Transportation has already been cut to the bone, and now were looking at cutting into the bone.

Another Prop. 42 suspension would almost surely result in projects being dropped from the STIP, major job losses and a negative impact on the state's economy. In fact, if Prop 42 is suspended yet again in this next budget cycle, many projects statewide will be axed, and lost with those projects will be critically needed economic activity and jobs.

Clearly, the quality of life in our great state will continue to diminish with every dollar that does not get invested in viable transportation projects, projects that ease congestion, enhance mobility, improve safety and air quality, and create jobs and drive California's economic engine.

According to study released earlier this year by the California Business Roundtable, for every state dollar spent on transportation projects, the state would see an additional $0.97 in indirect and induced spending in the economy-many of these transactions result in sales tax revenues and additional income for taxpayers in the state, creating more revenue not only for the state but local governments as well.

Moreover, every $1 billion of transportation spending in California creates more than 18,000 new construction jobs in the state.

Gov. Schwarzenegger has talked about "bringing the gold back to California" and has just returned from a trip to Japan to talk about trade. I applaud the governor's efforts to attract trade. Hopefully, the governor and the Legislature also recognize that any efforts to attract more trade compounds the critical goods movement issues we have at the Ports of Los Angeles and Long Beach and the Port of Oakland, as well.

While goods may not be moving, businesses are. Among the top reasons cited by those leaving the state is the lack of an effective and efficient transportation system. A system that was once the envy of the world, now can only infamously lay claim to having six of the top ten bumpiest urban roadway systems in the United States.

Our coalition is focused on two priorities: Opposing diversion of Prop. 42 funds in the 2005-06 state budget and getting constitutional firewalls on the ballot to protect against open-ended raids on gasoline sales tax revenues in the future. You and others can play an important role by speaking out and expressing your concerns to the governor and the Legislature.