Yes, which is why it allegedly has no money to pay for road repairs, etc. If it used the money collected from the gas tax for the roads, the roads would be sufficiently funded.
By the way, off topic here but did anyone try to take the interchange from the 22 west to the 5 north this morning? Caltrans had it totally shut down, at 8:30 a.m., to perform maintenance. Only the government would be so incompetent that it would shut down a freeway interchange in the middle of rush hour, on the busiest traffic day of the week, to perform maintenance. That alone is all the proof you need that government is incompetent and needs to be reduced, not expanded.