Vol. XV, No. 9
March 8, 2002

STATEWIDE PROPS: VOTERS DEDICATE TAX REVENUE ON GAS FOR BETTER HIGHWAYS AND TRANSIT

In a victory for efforts to ease California gridlock through needed transportation projects, California voters overwhelmingly approved Proposition 42 on March 5. When effective, the measure dedicates more than $1 billion a year from state sales tax revenue on motor vehicle fuel to transportation improvements.

Cal-Tax President Larry McCarthy, who signed ballot arguments in support of the measure, said Proposition 42 “helps ensure transportation taxes we already pay are spent properly, and accountably, to improve road safety and reduce traffic – without raising taxes.”

A late attempt by the California Teachers Association and state employee unions to ambush the Transportation Congestion Improvement Act through a $3 million ad campaign did not prevent the measure from winning handily with 69 percent of the vote.

The Los Angeles Times quoted CTA President Wayne Johnson as saying he did not regret the late advertising blitz. Proposition 42 foes acted out of self-interest because they see the possibility of fewer general fund dollars available for teachers’ pay or state jobs if the sales tax on gas revenues are earmarked for transportation.

“We knew when we did it that it would be risky,” Mr. Johnson told The Times.

The measure becomes effective after current law that earmarks sales tax on gasoline for transportation from 2003-04 through 2007-08 expires. The Legislature and governor have flexibility to spend the money differently in an emergency.

Voters also decided these statewide propositions:

Prop. 40 – Clean water and parks bond. Approved by 57 percent of the vote. Cal-Tax supported this measure.

Prop. 41 – Voting equipment bond. Approved by 51 percent. Cal-Tax opposed this measure.

Prop. 43 – Vote counting. Approved by 71 percent. (Cal-Tax: No recommendation.)

Prop. 44 – Conduct by chiropractors. Approved by 79 percent. (Cal-Tax: No recommendation.)

Prop. 45 – Relaxing legislative term limits. Defeated with 58 percent voting against it. (Cal-Tax: No recommendation.)