Spillover

When collections from gas sales tax increases faster than other taxable items, transit funding gets a boost (throught a complicated formula) to help cover its higher costs of fuel and accomodate higher demand. These funds are split between state and local agencies (through the State Transit Assistance Program).

Or that is transit funding SHOULD get a boost, but over the last two decades, most of this money has ended up in the general fund. Our Governor’s budget proposal is no better, and over the next 10 years, will divert and estimated $4.1 billion spillover funds away from transit.

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