California's November transportation bond is $20 billion, with $4 billion for transit. Yet Gov. Schwarzenegger proposes to use a public transit account for the same amount, to help pay off the bond's debt payments.
"At issue is an obscure but important trust fund known as the Public Transportation Account, which finances both construction and operation of transit across the state.
One source of funding for this account is 'spillover funds' -- created, under law, when sales tax receipts on gasoline reach a certain level...Schwarzenegger has proposed using that spillover to pay off debt on past transportation bonds, instead of using it for transit. He argues that voters will likely approve new bonds in November that will provide $4 billion for transit, so the net effect will still be a boost for buses and rail, even if the spillover goes to retiring debt. This argument doesn't wash..."
Thanks to Marta Frausto via Central Valley Air Quality listserv
FULL STORY: Transit raid: Governor tries to take away rail, bus money
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