Shaw

This case considers the effect on the state budgetary process of a bond initiative measure (Proposition 116) almost two decades after it was approved by voters. Specifically, we consider the legality of the Legislature’s creation of the Mass Transportation Fund, the legality of the Legislature’s transfer of a portion of spillover gas tax revenue to the Mass Transportation Fund and the Legislature’s appropriation of $1.2 billion from the Mass Transportation Fund and the Public Transportation Account for the 2007-2008 budget year in light of Proposition 116.

Josh Shaw, an individual California taxpayer and elector, and the California Transit Association, a nonprofit corporation (hereafter petitioners), filed a petition for writ of mandamus, declaratory and injunctive relief against John Chiang, the California State Controller, and Michael C. Genest, California Director of Finance (hereafter the State), challenging the Legislature’s actions. The trial court generally upheld the challenged actions, rejecting only the Legislature’s transfer of $409 million from the Public Transportation Account to the General Fund for past debt service payments on Proposition 108 bonds as not…