• • MEMORANDUM TO: GOVERNOR CLEMENTS FROM: Bob Davis DATE: March 9, 1987 SUBJECT: Highway Funds If the tax bills are enacted adding 5 to the tax on motor fuels, the method of financing the Executive Policy Budget is reduced by $300 million. The Highway Fund gains $300 million more in revenue than in the Executive Policy Budget. There are three possible ways of addressing this reduction. 1. Reducing appropriations to another part of the budget by an equal amount. 2. Requiring the Highway Fund to buy $300 million in land as a condition of support for the 5 tax. Interpreting the federal highway contractor reimbursements to be earned federal funds derived from non-dedicated sources. The amounts available would be: 1985 1986 1987 108,844,000 358,901,000 118,745,000 Sub total $586,490,000 Less transfers of: a. 42,557,923 (1986 Savings and Tuition) b. 32,500,000 (Prisons and Workers Comp) TOTAL AVAILABLE $511,432,077 I recommend that you choose alternative 3 provided that the Highway Commission and the Engineer-Director sign off on the total available.