• Requires specified percentages of General Fund revenues to be set-aside for acquisition, construction, rehabilitation, modernization, or renovation of infrastructure.
• Expenditures must be divided equally between state projects and local projects, other than school and community college district projects, including local street, transportation, water, park, and open space projects.
• Proposition 98 school funding guarantee is unchanged.
• Amount of first set-aside scheduled for 2006-07 is 1%; they increase 0.3% annually to 3% and then remain fixed. Set-asides are subject to increase, decrease, or suspension with revenue increases and decreases.