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Lower HUTA Estimates Released for Current Fiscal Year

Revenues 20 Percent Lower than Previous Estimates

May 23, 2013
The Local Government Finance Almanac today posted revised Highway User Tax Account (HUTA) estimates for FY 2012–13, which include a significant reduction in Proposition 42 revenues.
The individual city and county numbers are based on revised statewide estimates recently released by the Department of Finance (DOF).

The DOF and the State Controller’s Office (SCO) have been working in recent months to resolve various misallocations of Streets and Highways Code Section 2103 Highway Users Tax allocations. Based on the reconciliations recently determined by DOF and SCO, the estimated total allocations to the Local Streets and Roads, State Transportation Improvement Plan and State Highway Operations and Protections Program for FY 2012–13 have been revised downward. Estimated revenues for FY 2012–13 for each local agency are approximately 20 percent lower from estimates released a year ago.
Following several meetings with the DOF and SCO discussing the need for these revised estimates, the League and California State Association of Counties (CSAC) requested a full and written explanation for the revisions. The League will distribute the information when it receives the explanation. The League and CSAC are also considering other options to clarify the problems that lead to the revisions and confirm the final actions. This may include a third party audit. 
According to the DOF and SCO, the primary reasons for this downward revision concern the implementation of provisions AB1465 (2012) that shifted a portion of Sec2103 funds to the state highway account to backfill for funds shifted from that account to the general fund for transportation debt service. In addition to shifting FY 2012–13 funds, the bill retroactively shifted allocations for FY 2011–12.

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