Auto Club Urges Legislature to Protect Transportation Funding

    LOS ANGELES--May 31, 2001--The Automobile Club of Southern California today urged state legislators not to use transportation dollars as a quick fix for balancing the budget.
    The Auto Club said such a move could adversely affect the state's ability to deal with a growing transportation crisis in California.
    In a letter sent today to members of key legislative budget and transportation committees, the Auto Club said the legislature has underinvested in the state's transportation systems for decades. As a result, California has an estimated $100 billion in unmet transportation needs.
    "Last year the Auto Club supported the Congestion Relief Act of 2000, which for the first time allowed the use of sales taxes on gasoline for transportation purposes including public transit," said Anne Drumm, Auto Club legislative policy manager. "Now, less than a year later a proposal has been made to delay implementation of the Act for two years and transfer all $2.5 billion back into the General Fund. We don't believe transportation should bear the brunt of the state's budget problems."
    In its letter, the Auto Club says if the legislature does determine that all or a portion of revenues from the gasoline sales tax should be used to balance the budget, at a minimum the following conditions should be included in any legislation:

--	The proposed two-year authority to defer transfer of gasoline sales tax revenues should be reviewed by the legislature prior to the next budget year to determine if the second year of deferral is necessary.
--	The California Transportation Commission should review and approve each loan made from gasoline sales tax money. No loan should be granted unless the Administration can assure the Commission that no transportation project planned or under construction will be delayed.
--	Any loan of Motor Vehicle Account funds should not adversely impact either the service or operations of the Department of Motor Vehicles or the California Highway Patrol. An increase in motorist fees would not be an acceptable means of backfilling loaned funds.

    The Auto Club currently is supporting a constitutional amendment dedicating motor vehicle funds to transportation, according to Drumm. She noted that the Legislative Analyst's office has reported that public transportation projects will lose $264 million and highway and other transportation projects may not be completed as scheduled under the Governor's proposed plan.
    "The Traffic Congestion Relief Act of 2000 uses the state sales tax on gasoline to make an initial downpayment of $8.2 billion for transportation uses over the next six years," said Drumm. "The Auto Club believes that legislators should carefully consider the impact of removing or delaying any of that money in their efforts to balance the state budget."
    The Automobile Club of Southern California, the largest affiliate of the AAA, has been serving members since 1900. Today, the Auto Club's members benefit by the organization's emergency road service, insurance products and services, travel agency, financial products, automotive pricing, buying and financing programs, automotive testing and analysis, trip planning services and highway and transportation safety programs. Information about these products and services is available on the Auto Club's Web site at www.aaa-calif.com.
    NOTE TO EDITORS: Copies of the Auto Club's letter may be obtained by calling 714/885-2333.