On June 30th, the California Court of Appeal, Third District, held that $1 billion in "spillover" gas tax revenues dedicated to public transportation by Proposition 116 may not be diverted by the California Legislature to the General Fund. That decision became final when the California Supreme Court refused to review it on September 29.

These rulings are a significant victory for all Californians, and especially for low-income communities where transit services have been scaled back as a result, in part, of the misappropriation of funds that has now been found illegal.

Public Advocates represented the amici curiae in this case, Shaw v. Chiang, arguing on the side of the plaintiffs that the Legislature's transfer of the "spillover" gas tax revenues was both illegal and bad public policy. The amici curiae are Urban Habitat, TransForm, the Los Angeles Bus Riders Union, the California Public Interest Research Group, the Planning and Conservation League, California Rural Legal Assistance, Inc., and Legal Services of Northern California.

The brief is available at http://www.publicadvocates.org/docs/ApplicationandbriefofamicicuriaeFINAL12-9-08.pdf 

 Read more in the SF Chronicle: 10/02 High court says state can't raid transit funds

Richard A. Marcantonio
Managing Attorney
Public Advocates Inc.