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Assembly hearing spotlights Motor Vehicle Account shortfall and proposed one‑time transfers
Summary
At an informational hearing, the Department of Finance and the Legislative Analyst's Office described a widening Motor Vehicle Account deficit and the administration's proposal for a one‑time $166 million transfer from air pollution and greenhouse gas funds to cover mobile‑source costs, prompting lawmakers to warn against repeated one‑time fixes.
At an informational hearing of the California State Assembly Transportation Committee on March 1, 2025, the Department of Finance and the Legislative Analyst's Office outlined a structural shortfall in the Motor Vehicle Account and an administration proposal to use one‑time transfers to bridge near‑term costs.
"The motor vehicle account provides funding to enforce the rules and regulations of the vehicle code and the use of vehicles on state highways," said Bowen Peterson, Department of Finance. "Total revenue in 2526 [sic] expected to be about $5,000,000,000...Expenditures are expected to total about $5,200,000,000." Peterson described the administration's budget proposal as a one‑time $166,000,000 transfer in 2526 from the Air Pollution Control Fund and the…
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