The passage of Proposition 42 rendered the "spillover" mechanism unnecessary. In order to simplify the state’s transportation funding structure, we recommend the enactment of legislation to eliminate the spillover mechanism for generating revenue into the Public Transportation Account (PTA) beginning in 2008-09. This would also reduce the volatility of revenues into the PTA. While eliminating the spillover would result in less funding for transit operations through the State Transit Assistance program in some years, it would increase the predictability and stability of annual funding. Moreover, additional funds could become available for broader transportation uses.