Auto Club Endorses Proposition 53; Measure Would Bolster Infrastructure Without Raising Taxes.

News Editors/Business Editors

LOS ANGELES--(BUSINESS WIRE)--Oct. 1, 2003

The state's investment in highways and other critical infrastructure is just a fraction of what it was 30 years ago, while California's road conditions and traffic congestion recently were ranked the worst of any U.S. state. Because of these needs, the Automobile Club of Southern California is supporting Proposition 53, which would help finance badly needed infrastructure improvements without raising taxes.

"The proposed recall of California's governor understandably is dominating coverage of the upcoming election, but Proposition 53 also could make a serious impact on the state's future," said Alice Bisno, the Auto Club's vice president for regulatory affairs.

"Many of our most basic needs -- for adequate transportation, hospitals, water, sewers and other public services -- have been inadequately funded for more than 20 years as our infrastructure has been allowed to deteriorate and not keep pace with population growth," Bisno said.

Proposition 53 seeks to reverse that trend by requiring that up to 3 percent of the state's General Fund expenditures are dedicated each year to building and maintaining infrastructure projects. Brochures explaining details of the proposition are available free to members and non-members at each of the Auto Club's 68 district offices.

In the 1960s and 1970s, California spent 15% to 20% of its General Fund budget on infrastructure projects, including roads, universities, water and power systems, and recreational facilities. Today, the state allocates just 0.2% of the General Fund to directly pay for infrastructure and about 2% to repay infrastructure bonds.

"Inadequate infrastructure funding didn't just begin with the recent budget crisis -- it has been with us through times of record state budget surpluses as well," Bisno said. "When crucial infrastructure needs are under-funded in boom times as well as during difficult budget years, it's a signal that priorities need to change."

This week, Los Angeles and San Francisco were named the metropolitan areas with the worst congestion in the nation in a study by the Texas Transportation Institute.

Bisno said that Proposition 53 will help ensure that basic infrastructure needs are addressed during each budget year, as long as the state can afford it. The measure includes a provision to ease the 3 percent requirement during times when state revenues fail to hit specified targets, so it would not endanger the state's fiscal health during a crisis, she added.

Money in Proposition 53's infrastructure fund would be split evenly between state and local infrastructure projects. Infrastructure projects eligible for these funds include those for:

-- Transportation

-- Water resources

-- Higher education

-- Natural resources

-- Criminal justice

-- Health services 

-- Public buildings

Proposition 53 would provide funding to build and repair police and fire stations, hospitals, parks and recreational facilities, universities and libraries, water and power systems, and transportation facilities -- all without raising taxes.

Proposition 53 also preserves existing constitutional guarantees for public education funding.

"The Auto Club supports Proposition 53 because infrastructure is one of the primary responsibilities of government, and this responsibility has been under-funded in California for too long," Bisno said. "Proposition 53 is a reasonable, fair way to ensure that basic services are provided to our residents when their tax dollars are allocated in Sacramento."