* WARNING: THIS IS AN UNOFFICIAL, INTRODUCTORY COPY OF THE BILL.
THE OFFICIAL COPY CONSIDERED BY THE CITY COUNCIL IS THE FIRST READER COPY.
INTRODUCTORY*
CITY OF BALTIMORE
COUNCIL BILL R
(Resolution)
Introduced by: Councilmember Spector
A RESOLUTION ENTITLED
A COUNCIL RESOLUTION concerning
title
Vote Yes on Question #1 - State Transportation Fund Lockbox
FOR the purpose of supporting the proposed constitutional amendment to protect transportation funds from use on other projects, and urging a "Yes" vote on Question #1.
body
Recitals
At the general election on November 4th Maryland voters will elect officials to state and federal offices and will be asked to decide on a number of policy questions. The first of these questions, Question #1 on the ballot, would amend the Maryland Constitution to limit the use of funds in the Transportation Trust Fund. The official ballot summary for this question states:
This proposed constitutional amendment would require that funds in the State Transportation Trust Fund be used only for transportation purposes and prohibit transfers from the Transportation Trust Fund unless the Governor declares a fiscal emergency by executive order and the General Assembly passes legislation by a supermajority vote approving a different use or a transfer of the funds.
The Transportation Trust Fund is a special fund that is separate from the State's General Fund. The General Fund consists of revenues collected by the State that are not dedicated by law to any specific purpose; a special fund consists of revenues, the use of which are statutorily limited as to purpose. The Transportation Trust Fund is used to finance operating and capital expenses for highway, transit, aviation, port, and motor vehicle services and projects. The primary sources of funding for the Transportation Trust Fund are motor fuel taxes, motor vehicle excise taxes, motor vehicle registration and licensing fees, federal funds, bond proceeds, rental car sales taxes, a portion of the State's corporate income tax, and revenues from transit, port, aviation, and motor vehicle operations.
The proposed amendment generally requires that funds in the Transportation Trust Fund be used only to pay the principal of and interest on transportation bonds and for construction and maintenance of an adequate highway system or any other purpose related to transportation. Funds in the Transportation Trust Fund generally may not be transferred to the General Fund or a special fund of the State.
However, the proposed amendment allows funds in the Transportation Trust Fund to be used for a purpose not related to transportation or transferred to the General Fund or another special fund of the State if the Governor, by executive order, declares that a fiscal emergency exists and the General Assembly passes legislation by a three fifths majority in each House (i.e., at least 85 affirmative votes from the 141 members of the House of Delegates and at least 29 affirmative votes from the 47 members of the Senate of Maryland) that approves a different use or a transfer of the funds.
The proposed amendment does not apply to an allocation or use of funds in the Transportation Trust Fund for counties, municipalities, or Baltimore City for transportation purposes that is authorized by State law or a transfer of funds from the Transportation Trust Fund to the Maryland Transportation Authority or the Maryland Transportation Authority Fund.
This amendment is necessary to ensure that funds raised from sources earmarked for transportation projects by law are actually spent for their intended purpose, rather than being diverted to fill other budget holes as has been done in the past. Although most of the funds diverted in this way have subsequently been paid back, there's no guarantee that that would be true in the future, and even temporary diversions can sidetrack vital transit projects and add significant costs to them because of delay.
Diversions of this type have also hit local transportation budgets hard. Baltimore City alone has been subject to a $100-million diversion each year since 2009. Although this amendment wouldn't directly address these local diversions, it is an important step in the right direction to make clear that diversion of funds from transportation projects is not an acceptable tactic for making up shortfalls in other parts of the State's budget.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF BALTIMORE, That the Council supports the proposed constitutional amendment to protect transportation funds from use on other projects and urges a "Yes" vote on Question #1.
AND BE IT FURTHER RESOLVED, That a copy of this Resolution be sent to the Mayor and the Mayor's Legislative Liaison to the City Council.
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