Wilson

— At issue in these consolidated appeals is the legality of using funds from the State Highway Account (SHA) to reimburse the General Fund for payments of principal and interest on two rail bond measures passed in 1990. The state and three of its top officials (hereafter, the State) contend that article XIX, section 4 of the state Constitution permits the Legislature to use SHA funds in this manner. Two state employee groups and some individual taxpayers disagree, contending this transfer of SHA moneys violates the bond acts at issue, as well as article XIX and Streets and Highways Code section 182.

Two transfers are at issue: a $150.5 million transfer for the 1994-1995 fiscal year; and a $77 million transfer for the 1995-1996 fiscal year. We conclude that neither of these transfers violates the underlying bond acts. We also conclude, as did the trial court, that the portion of the $77 million transfer traceable to the “gas tax” violates article XIX, section 4 of the state Constitution. We therefore affirm, but correct a clerical error in the judgment in the suit involving the Professional Engineers in California Government.

Background

In June 1990, California’s voters…