AC TRANSIT DISTRICT GM Memo No. 07-225 Board of Directors ...

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one month after passage of the tardy state budget. When the budget was signed last month, Department of Finance was estimating a $5 billion shortfall based upon reduced income tax revenues. That projection is now up to an $8.6 billion deficit, according to latest DOF numbers which consider reduced revenues and base-line spending needs. Among other FY 2007-08 Budget assumptions that cause even wider discrepancies are: • EdFund will be sold for $1 billion. This is a precarious number, at best. Nobody really knows how much EdFund would generate in one-time funding, or if it can be sold at all. • Ballot initiatives by rival tribes could block compacts just approved for additional slot machines. In addition, the per-machine revenues may not be achievable. • The California Transit Association has sued to block divergence of $1.3 billion in mass transit funds to the state general fund. • STRS sued and won at trial and appellate court levels to block tapping the refund for $500 million. The Governor has agreed to return the $500 million to STRS, an amount that would severely cut into the state’s reserve account. • The budget does not fund major state employee pay raises, including a stalled contract with the CCPOA - - an amount estimated at $300 million during Sessionend attempts at legislation sponsored by prison employees. • Plummeting home sales are steeper than predicted, and will cut further into state income tax revenues. The following is a link to DOF’s September revenue forecast: http://www.dof.ca.gov/HTML/FINBULL/2007_FB/September/ Legislation The Legislature adjourned on September 12 th , which was two days earlier than scheduled. This has sparked a debate over the Governor’s signing deadline. As you know, at the end of session the Governor has 30 days to act on bills. Many assumed that the deadline this year would be October 12 th . While Legislative Counsel initially agreed with this date, Leg Counsel has rescinded that opinion and now declares the Governor has until midnight on October 14 th to sign or veto bills. That extra time will be needed. To date the there remain 596 bills pending on the Governor’s desk. Given the large number of bills still pending, we will send an updated bill chart prior to the Board meeting next week. 3
Bill Topic Status Client-Position AB 57 (Soto) Highways: federal Governor’s Desk AC Transit-Support E-09/12/2007 funds: Safe Routes to School. NOTE: AB 57 repeals the sunset date for the Safe Routes to School (SRTS) grant program, thereby extending the program indefinitely. The bill also specifies that any budget appropriation for this program shall be in addition to any federal funds allocated for this program. AB 118 (Nunez) E-09/27/2007 Alternative fuels and vehicle technologies: funding programs. Governor’s Desk AC Transit-Support & Seek Amendments NOTE: The bill would enact the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007. Beginning July 1, 2008, this bill would increase vehicles registration fees and vessel registration fees, as well as increase the smog abatement fee. The purpose of this bill is to create a funding source for research, development, and deployment of clean fuels and advanced vehicle technologies. The goal is to increase the use of less carbon intensive fuels and to increase the diversification of the state’s fuel market. SB 118 would establish two programs. One administered by CARB which would focus on grants and loans that reduce emissions, and one by the Energy Commission which would provide grants and loans on the development and deployment of alternative fuel vehicles. Both of these programs could be an important funding source for AC’s fuel cell and alternative fuel program. Prior versions of the bill excluded local public agencies from applying for these funds, raised concerns that mandated programs would not be eligible, and did not mention hydrogen as an alternative fuel. All of theses issues have been corrected. AB 193 (Committee on Budget) E-09/10/2007 Transportation Signed Into Law AC Transit-Watch revenues. Chapter 313, Statutes of 2007 NOTE: As requested by the Governor, this bill makes the corrections to the budget trailer bill that redirected spill over funds to the Transportation Debt Service Fund, which is used to 4
Page 1 and 2: BRIEFING MEMO AC TRANSIT DISTRICT G
Page 3: Health Coverage gamble: Enter the l
Page 7 and 8: allowed BART to make inflationary a
Page 9 and 10: CTC from 9 to 11 members. One new m
Page 11 and 12: 3 Lynn M. Suter and Associates Gove
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Page 15 and 16: AB 945 (Carter) E-09/11/2007 Transp
Page 17 and 18: AB 1581 (Fuller) E-09/06/2007 Traff
Page 19: ♦ Renames the WTA the San Francis

AC TRANSIT DISTRICT GM Memo No. 07-225 Board of Directors ...

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