Program Enhancements and Other Budget Adjustments
Motor Vehicle Account

Current and projected program costs have increased beyond current revenue levels. Absent a correction, the Account would become insolvent in 2008-09.


MOTOR VEHICLE ACCOUNT
 Vehicle registration fees and driver's license fees are deposited into the Motor Vehicle Account to be used for the administration and enforcement of laws regulating the use, operation, and registration of vehicles on California public streets and highways, including the enforcement of traffic and vehicle laws by state agencies and the mitigation of the negative environmental effects of motor vehicles. The California Highway Patrol, Department of Motor Vehicles, and Air Resources Board receive 98 percent of the funding.

The Budget proposes an increase of $11 per vehicle to the fee that provides support for the California Highway Patrol, as well as imposing penalties on those who are late in paying this fee, in line with penalties required under current law for the base registration fee. This will generate approximately $385 million in revenue in 2008-09 year for partial year implementation, increasing to $522 million for full-year implementation in 2009-10. These revenues will support continued public safety initiatives, such as the California Highway Patrol staffing and radio system upgrade, while maintaining a prudent reserve.
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CHAPTER HIGHLIGHTS for Business, Transportation, and Housing Back to Top

 Proposed Workload Budget
 Proposed Budget-Balancing Reductions
 Other Special Session Issues
 Program Enhancements and Other Budget Adjustments
  Transportation Programs
  Transportation Revenue
 image of black pointing arrowMotor Vehicle Account
  California Highway Patrol
  Department of Motor Vehicles
  Business and Housing
  Department of Housing and Community Development
PRINTABLE BUDGET DOCUMENTS Back to Top
Budget Summary - Business, Transportation, and Housing (pdf * - 294K) -
Provides this entire Business, Transportation, and Housing Chapter in pdf format.
ADDITIONAL INFORMATION Back to Top
Proposed Budget Detail - Business, Transportation, and Housing
Displays Proposed Budget Detail information for Business, Transportation, and Housing.