California Constitution Article XIX A - Loans From the Public Transportation Account or Local Transportation Funds [Sections 1 - 2]
California Constitution – Article XIX A: Loans From the Public Transportation Account or Local Transportation Funds
[Sections 1–2]
🚍 Purpose of Article XIX A:
Article XIX A of the California Constitution governs the loaning of funds from:
The Public Transportation Account (PTA)
Local transportation funds
These provisions ensure that loans from these transportation-specific funds are restricted, temporary, and used responsibly, while protecting money meant for public transit and transportation infrastructure.
🔹 Section-by-Section Summary:
Section 1 – Restrictions on Loans from the Public Transportation Account
The Legislature may borrow money from the Public Transportation Account only if:
The loan is temporary
The loan is for cash-flow needs (i.e., not long-term deficit funding)
The funds are repaid in full during the same fiscal year or within three years of the date of the loan
Funds must be repaid with interest.
Loans cannot interfere with the intended use of the account, which is to support public transportation services and capital projects.
Section 2 – Restrictions on Loans from Local Transportation Funds
Similar rules apply to local transportation funds (such as those created by sales taxes for transit).
The state may not borrow local transportation funds unless:
A revenue shortfall or emergency exists
The loan is temporary and repaid within three fiscal years
The loan does not impact transit operations or local obligations
✅ Key Principles of Article XIX A:
Protects transportation funding from being diverted for unrelated state purposes.
Ensures loans are short-term, with a clear repayment plan.
Guarantees that transit users and local agencies are not harmed by state fiscal decisions.
Reinforces fiscal discipline and accountability when managing transportation funds.
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