How does the proposed “gas tax flip” affect local transportation and how does it fit in to current budget negotiations?
The “gas tax flip” proposed as part of Gov. Schwarzenegger’s budget would eliminate the sales tax on gas and, instead, increase the excise tax on gas resulting in a 5 cent per gallon price reduction at the gas pump. However, the end result would have a devastating impact on local transit: an estimated $6.5 million annual loss to the Santa Cruz Metro Transit District. This 20 percent decrease to Metro’s budget would require a reduction in the number of bus routes offered, a reduction in the number of Para Cruz shuttles, which transport people with disabilities, and the loss of more than 200 union jobs that include health benefits.