House substitute limits sales-tax allocations to B‑and‑C roads and water program

Representative Curtis explained a first substitute to House Bill 6,004 that caps portions of the state sales tax now allocated to B‑and‑C roads and to water loan/program accounts.

“The bill is rather… it has essentially three aspects,” the sponsor said, describing how a portion that historically flowed as 1/16ths of the state sales tax would be capped at a baseline dollar amount. The sponsor said the amount that went to B‑and‑C roads in the past fiscal year was $18,743,000 and that the bill would limit that distribution to that baseline; if sales tax fell the distribution would revert to a percentage of the smaller total.

For the water allocations, the sponsor said FY2003 would be based on a $16,243,000 baseline and that the cap would rise to $17,500,000 in FY2004. The amendment converts several fixed dollar earmarks (for dam safety, endangered-species mitigation and DWR administration) into percentage shares of the capped total so those line items move up and down with the capped baseline.

Supporters said the approach keeps specific programs whole when revenue rises while protecting the Legislature from uncontrolled growth in those earmarks. In questions, members sought confirmation that the cap applied even if sales tax collections grew and the sponsor reiterated that the cap limits growth: if 1/16th of collections rose to $20 million, the beneficiaries would still receive the capped amount.

The House moved on after the sponsor’s explanation to other business; the substitute language was adopted for further consideration as the bill moved through the calendar.