Business, Transportation, and Housing
Public Transportation Account

A portion of the revenue in the Public Transportation Account (PTA) is derived from "spillover" sales tax on gasoline. The revenues occur when revenue derived from gasoline sales taxes is proportionately higher to revenue derived from all taxable sales pursuant to a statutory formula, and generally reflect higher gas prices. The Governor's Budget projected $617 million in spillover revenues for 2007-08 and proposed to reallocate those funds, along with other funding available in the PTA, to offset General Fund expenditures for K-12 home-to-school transportation, debt service on transportation related General Obligation bonds, and transportation services for regional development centers.

In April, a Finance Letter was proposed to establish Budget Bill Control Section 24.8 to amend the way in which home-to-school transportation funding and General Fund savings would be achieved.

May Revision revenue estimates increase the amount of spillover funding available by $210 million in 2007-08. Of this amount, the May Revision proposes to amend Control Section 24.8 to reimburse the General Fund for $200 million in 2006-07 home-to-school transportation expenditures. (See the Education chapter.) Additional revenues from spillover of $5 million in 2006-07 and $28 million from sales tax on diesel fuel in 2007-08 provide funding for an increase in state transit assistance grants from $185 million to $206 million in 2007-08. It is projected that these grants will grow to $373 million in 2008-09.

Spillover revenues are projected to grow to $935 million in 2008-09. While such estimates are highly uncertain, there appears to be sufficient fiscal capacity in the Account to continue to offset an additional $200 million in General Fund costs in 2008-09 and ongoing, while providing at least $100 million for program growth in the PTA.
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CHAPTER HIGHLIGHTS for Business, Transportation, and Housing Back to Top

 Transportation Bond Funding
 Department of Transportation
image of black pointing arrowPublic Transportation Account
 Department of Motor Vehicles
PRINTABLE BUDGET DOCUMENTS Back to Top
Revised Budget Summary - Business, Transportation, and Housing (pdf * - 22K) -
Provides the entire Business, Transportation, and Housing Chapter in pdf format.
ADDITIONAL INFORMATION Back to Top
Revised Budget Detail - Business, Transportation, and Housing
Displays Revised Budget Detail information for Business, Transportation, and Housing.

Proposed Budget Summary - Business, Transportation, and Housing (January 2007)
Displays Proposed Budget Summary information for Business, Transportation, and Housing.