Gas Tax Fills Up Budget Holes

Summary


Voters passed Proposition 42 in 2002 to send a portion of the state's gasoline and diesel fuel tax to transportation projects. Instead, a constitutional loophole allowed lawmakers to divert the money to the General Fund.

By the end of the next fiscal year, an estimated $3.1 billion will have been siphoned from gas tax proceeds to fill budget holes.

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Extract


Gas Tax Fills Up Budget Holes

The California Performance Review, a 2,500-page report commissioned by Gov. Arnold Schwarzenegger, suggests closing the loophole and putting more gas tax mo...

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