Highlights

• Border Governors Conference Council of Economic Advisors Holds Inaugural Meeting at 2008 Conference
• XXVI Border Governors Conference
• State Launches "Community Stabilization Home Loan Program"
• Governor Schwarzenegger Highlights Economic Benefits of Proposition 1C
• Governor Signs Legislation to Expedite Funding for Transportation and Housing Projects
• Secretary Bonner Welcomes 2008 BIO International Convention to California
• California Selected as Partner State for CeBIT 2009
• CTC Approves Landmark $3 Billion Goods Movement Program

News and Press Releases - 2006

Governor restructures transportation debt, prepares to implement Real ID Act, and supports Central Valley partnership in May Revisions to state budget

SACRAMENTO - Proposing $920 million to partially repay the loan that was created when Proposition 42 was suspended in 2004-05; allocating $18.8 million to begin the planning, programming, and infrastructure development necessary to implement the Federal Real ID Act; and dedicating $5 million on a one-time basis to support implementation of the California Partnership for the San Joaquin Valley are most notable in Gov. Schwarzenegger's May Revisions to the state Business, Transportation & Housing Agency budget.

"Gov. Schwarzenegger is committed to repaying the transportation debts he inherited upon his arrival in Sacramento," State Business, Transportation & Housing Agency Secretary Sunne Wright McPeak said. "The governor also wants to ensure California is prepared to implement future federal identity regulations, and poised to regain economic vitality in the Central Valley."

The May Revision proposes repaying $920 million in 2006-07 to allow local governments to receive $254 million in funding for local streets and roads repairs. While the proposed bonds will provide substantial funding for transit, highways, local roads and other transportation capital needs beginning 2007-08, Proposition 42 funds are needed in 2006-07 to keep previously planned transportation capacity projects moving.

Other transportation funding includes an increase of $35 million in grants for local transit operations to a level of $270 million. This level of state support for transit operations has increased by $153 million over the level in 2004-05.

The May Revision also proposed $18.8 million to begin the planning and programming necessary to implement the federal Real ID Act - which sets minimum standards for the creation and issuance of driver license and identification cards that will be acceptable for official federal purposes such as air travel and entering federal buildings. Recognizing the Act will require 24 million licensed drivers and identification card holders in California to return to state Department of Motor Vehicles offices to establish identity and obtain compliant cards, it will have significant workload and cost implications.

And finally, the May revision proposes $5 million on a one-time basis to support implementation of the San Joaquin Valley Strategic Action proposal. Established by Executive Order on June 24, 2005, the California Partnership for the San Joaquin Valley was created to address the economic challenges in the eight counties that comprise the San Joaquin Valley region (Kern, Tulare, Kings, Fresno, Madera, Merced, Stanislaus and San Joaquin counties).