This amount includes all the constitutionally dedicated taxes but excludes federal funds. If this amendment is approved by a majority of the voters, the additional dedicated taxes will be phased in over four years. Voter approval of this constitutional dedication amendment does not increase any tax nor does it increase the amount of annual revenue collected by the state. Any tax revenue that is constitutionally dedicated to transportation purposes results in a corresponding decrease in General Fund resources. The dedicated tax money must be allocated to transportation capital projects unless and until the people remove the dedication by voting to change the constitution.
Future capital needs total multi-billions of dollars.
Both require a stable and dependable source of yearly state funding to provide adequate annual revenue to pay for construction and repairs and also to repay the principal and interest on long-term loans. Because voters do not approve bonds issued by the TTF, they are not backed by the full faith and credit of the state and lack the absolute guarantee that lenders will be repaid. Constitutional dedication of revenue by the voters to the Transportation Trust Fund assures a guaranteed level of funding regardless of changing economic conditions. Bondholders know there is a stable and dependable source of revenue to repay their loans. This creates a broad reliable market for the sale of bonds issued by the TTF, and assures a continuing source of money for improvement of transportation infrastructure.