LEGISLATIVE UPDATE

Propositions 1A and 1B Overview

Updated December 19, 2006

Proposition 1A Will Fully Dedicate Gasoline Sales Tax Revenues to Transportation

Beginning on June 30, 2007, Proposition 1A permits the state to borrow gasoline sales tax funds only twice in any 10-year period, on the condition that the funds are repaid within three years, with interest. In addition, a second loan would not be allowed until the first loan was fully repaid. Proposition 1A also requires that any outstanding loans due to transportation accounts shall be fully repaid by June 30, 2016. Taking into account the significant repayment of loans included as part of the FY 2006-07 adopted budget, this ensures repayment of approximately $752 million due to the Traffic Congestion Relief Fund and $16 million due to the Public Transportation Account.

Proposition 1A Will Bring the Bay Area Approximately $274 Million Annually, $3.4 Billion Over Ten Years

In FY 2008-09 and annually thereafter (growing along with gasoline sales tax revenue), Proposition 42 will provide approximately $274 million for the Bay Area, including:

• Local Streets and Roads: $106 million for pothole repairs, new sidewalks or other improvements
• State Transportation Improvement Program (STIP): $118 million for major highway and transit improvements
• State Transit Assistance: $50 million for bus and rail operations and improvements

Table A (below) details how these funds (along with Proposition 1B funds, discussed next) would be distributed among Bay Area counties and major transit operators over the next ten years. For detailed estimates of the amount of local street and road funding from Propositions 1A and 1B to go to individual cities and counties in the region, click here (Excel).

Proposition 1B Promises Huge Benefits to Region

The $19.9 billion transportation infrastructure bond promises to deliver tremendous benefits to our region. Over a 10-year period, we estimate that the Bay Area will receive the following amounts:

• Public Transportation Modernization and Improvement: $1.3 billion
• Local Streets and Roads: $375 million
• STIP: $348 million

For statewide figures, click here.

Table A:
San Francisco Bay Area's Share of Proposition 1A and 1B
Ten-Year Forecast (FY2008 – 2017)
Dollars in millions

Local Streets and Roads
City & County Totals, by County	Prop 1A	Prop 1B
Alameda	$ 253.6	$ 75.0
Contra Costa	$ 179.7	$ 52.1
Marin	$ 48.4	$ 14.5
Napa	$ 32.9	$ 9.1
San Francisco	$ 144.2	$ 40.0
San Mateo	$ 133.1	$ 40.8
Santa Clara	$ 311.4	$ 91.7
Solano	$ 87.2	$ 24.3
Sonoma	$ 106.1	$ 27.9
Regional Total	$1,296.5	$ 375.4
State Transportation Improvement Program (STIP)
County	Prop 1A	Prop 1B
Alameda	$ 226.9	$ 54.5
Contra Costa	$ 147.1	$ 35.3
Marin	$ 43.0	$ 10.3
Napa	$ 26.6	$ 6.4
San Francisco	$ 116.0	$ 27.8
San Mateo	$ 119.5	$ 28.7
Santa Clara	$ 265.7	$ 63.8
Solano	$ 69.6	$ 16.7
Sonoma	$ 85.0	$ 20.4
Subtotal	$1,099.4	$ 263.8
Interregional (ITIP) Share (17%)	$ 393.8	$ 84.1
Regional Total	$1,493.2	$ 347.9
State Transit Assistance (STA) / Public Transportation Modernization
Operator	Prop 1A	Prop 1B
AC Transit	$ 53.9	$ 106.9
BART	$ 103.0	$ 245.8
CalTrain	$ 19.9	$ 40.4
Golden Gate Transit	$ 19.8	$ 40.0
SamTrans	$ 20.4	$ 47.3
San Francisco Muni	$ 151.1	$ 336.0
Santa Clara VTA	$ 63.5	$ 144.2
Population Share - MTC	$ 165.7	$ 347.0
Other Transit Agencies	$ 11.1	$ 26.5
Regional Total	$ 608.5	$ 1,334.1
Note: Estimates for Proposition 1A represent Proposition 42 funding from FY 2008 - FY 2017. Estimates of local street & road funding are based on 2006 population information from Department of Finance and 2006 data regarding registered vehicles and county-maintained roads . STA calculations are based on a 10-year average of historical apportionment factors. STIP calculations are based on 2006 county share.

The Bay Area also can anticipate significant sums from other competitive programs in the bond. If we conservatively assume that the region will receive somewhere between our share of the STIP (18 percent) and our share of the state’s population (20 percent), this translates into an additional $2.2 to $2.5 billion from the remaining programs. When combined with the three formula-driven programs above, this means the transportation bond could yield $4.2 billion to $4.5 billion for Bay Area transportation improvements over the next decade.