An additional $1.3 billion in California transportation projects could be up for bid by the end of the year if the state legislature approves Gov. Arnold Schwarzeneggers (R) proposed restoration of Proposition 42 funds in the 2005-2006 budget. Prop. 42 is a 2002 measure that earmarks California fuel taxes specifically for transportation funding. The taxes were diverted to the general budget since fiscal year 2003 because of the states fiscal crisis.
The restored Prop. 42 legislation would allocate $678 million to the Transportation Congestion Relief Program (TCRP), $254 million to the State Highway Account (SHA) in order to finance State Transportation Improvement Program (STIP) projects, $254 million to cities and counties for deferred maintenance of roads and $127 million to the Public Transportation Account, with half for STIP work and half for transit.