California State Rail Plan 2007-08 to 2017-18

Chapter XII – Intercity Rail FundingCHAPTER XIIINTERCITY RAIL FUNDINGFunding for intercity rail systems comes primarily from state sources, but alsoincludes local, federal, Amtrak, and railroad funding sources. Below is anoverview of these funding sources.PUBLIC TRANSPORTATION ACCOUNTThe Public Transportation Account (PTA) is the exclusive source of intercity railoperating funds and a potential source of intercity rail capital funds. Proposition116 designated the PTA as a trust fund to be used “only for transportationplanning and mass transportation purposes.” (Public Utilities Code Section99310.5)PUBLIC TRANSPORTATION ACCOUNT FUNDING SOURCESThere are five main statutory sources of funds for the PTA: state sales tax ondiesel fuel, retail sales tax on gasoline from the Transportation Investment Fund(TIF), gasoline spillover (when available), sales tax on nine cents of the gas(excise) tax, and State Highway Account (SHA) transfer of non-Article XIXrevenues. In 2005-06, total PTA revenue from these sources was $571 million.• Sales Tax on Diesel Fuel – The 4.75 percent portion of the 7.25 percentstate sales tax on diesel fuel, which in 2005-06 was $287 million.• Sales Tax on Gasoline – The five percent portion of the 7.25 percent statesales tax on gasoline. In 2005-06, the first year of the TIF transfer to thePTA, the amount was $136 million.• Sales Tax on Gasoline (Spillover) – Based on the statutory formula,gasoline spillover is available when revenues from the gasoline sales tax atthe 4.75 rate exceed revenues from all taxable sales at the 0.25 percent rate,shifting revenues to the PTA when gas prices increase faster than overallretail sales. This source was initiated when the sales tax on gasoline wasestablished in 1972. Although in past years spillover transfers occurredrarely there have been spillover transfers for the last five fiscal years. TheLegislature and the Governor have often directed these revenues, in wholeor in part, for purposes other than those usually funded from the PTA tomeet other state funding priorities. For example, in 2005-06, the spilloverwas $381 million, but the full amount was retained by the General Fund.• Sales Tax on a Portion of the Excise Tax on Gasoline (Proposition 111)A portion equal to 4.75 percent on nine cents of the state’s 18 cent pergallon excise tax on gasoline goes to PTA. In 2005-06 this source was$67 million.193