New battle flares over where to spend California's gas-tax windfall.

Knight Ridder/Tribune Business News,  November, 2004  

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By Andrew LaMar, San Jose Mercury News, Calif. Knight Ridder/Tribune Business News

Nov. 9--SACRAMENTO, Calif. -- High gas prices are doing more than causing motorists grief -- they are generating a windfall for California's treasury and triggering a battle over how to spend it.

At stake is $1.5 billion from sales taxes on gasoline that voters said in 2002 they want directed to roads, trains and buses. Gov.

Arnold Schwarzenegger and the Legislature used the money this year to balance the budget instead.

Meanwhile, the run-up in prices at the pump is fattening the pot.

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