The Asphalt Pavement Association of California Board of Directors held their second quarter Board of Directors Meeting in Sacramento on April 21^st and visited with several California Legislators and Caltrans Chief Deputy Director Randy Iwasaki.  Meetings were scheduled with the leaders of both parties in both houses of the legislature.  In addition, meetings were held with a variety of the committee chairs for Transportation and Environment.  Discussions focused on the Federal Stimulus, the current state budget deficit, the May 19^th ballot propositions, new regulations from the Air Resources Board and pending legislation.  Generally, the mood in Sacramento could be described as doubtful, but hopeful.  While most agreed that the propositions that are going to be voted on in the special election on May 19^th appear to have a marginal opportunity to pass, many remain hopeful that the electorate will realize the long term value and vote to pass them on the 19^th.  While poll numbers seem to be moving more strongly against all of the measures there is still a belief in some circles that the measures could ultimately be successful.  When discussing transportation funding and the possibility of the continued full funding of Proposition 42 and the Transportation program, everyone agreed that while that was a desirable goal, should the May 19^th propositions fail, everything would again be “on the table” for discussion as the legislature tries to close the budget gap.  Many commented that the passage of Propositions 1C, 1D and 1E were actually more important to the immediate transportation budget than the others.  Apparently the money from these three measures would take enough pressure off of the budget that transportation funding may not be adversely affected.  While your Board of Directors took no “official” position on any of the propositions in the special May election, you may want to consider how all these measures may affect the transportation budget in California.

 

Regardless of the outcome of the special election in May we face many long term challenges in funding the Transportation Program in California.  The economic crisis is causing more people to drive less, more people are driving fuel efficient vehicles and there are more alternative fuel vehicles on the road.  All of this leads to an overall reduction in the amount of gas purchased.  Add to that the fact that the gas tax has not been increased for over 15 years and the buying power of those dollars continue to decrease due to inflation and you can begin to see the problem and why we do not generate enough money to keep our transportation program fully funded at the necessary levels.  While many recognize the problem, few believe that an increase in taxes, of any kind, would be successful at this time.  This will become a long term effort for the industry on both a state and federal basis!  Please take every opportunity to make sure that your representatives hear from you on this issue!!