Governor Schwarzenegger Introduces Legislation to Implement Strategic Growth Plan
"In my State of the State address I proposed a Strategic Growth Plan for California's future. I have introduced legislation to make this plan a reality and I am asking the Legislature to partner with me to build more roads, more bridges, and more schools, improve air quality, invest in flood control and water management and protect public safety for the next generation," said Governor Schwarzenegger. "My Strategic Growth Plan is also fiscally responsible. It includes a limit on the amount of debt the state can have at any one time and it depends upon continuing the budget discipline we have instituted over the past two years. I want to thank the members of the Legislature from both sides of the isle who have come together to move this process ahead and I look forward to continuing this partnership to put this plan to work and build for the California of the 21st century."
Specifically, the Governor proposed the following legislation:
Debt Service Ratio Limit
SCA 21 (Runner, R-Antelope Valley) - Amends the state constitution to limit the amount of general fund supported debt to keep total general fund supported debt service to six percent of general fund revenues.
Transportation & Air Quality
AB 1838 (Oropeza, D-Long Beach)/SB 1165 (Dutton, R-Rancho Cucamonga) - Places before California voters a $6 billion transportation bond in 2006 and another $6 billion bond in 2008 to improve capacity and reduce congestion.
To ensure these bonds are leveraged to their full extent, the Governor has also called upon the Legislature to pass the following reforms:
ACA 4 (Plescia, R-San Diego) - Amends the California State Constitution to eliminate the ability of the Legislature and Governor to raid Proposition 42 funds for non-transportation purposes. These funds are derived from the sales tax on gasoline and are meant for transportation projects.
As an integral part of the Governor's GoCalifornia plan submitted during the 2005-06 legislative session, the Governor introduced the following three bills to reform the transportation project contracting and construction process. These reforms are also included as part of his Strategic Growth Plan.
AB 850 (Canciamilla, D-Pittsburg) - Authorizes the California Department of Transportation to contract with public and private entities to expand the number of toll roads and other toll facilities and high-occupancy toll (HOT) lanes, to increase capacity on our roads.
SB 371 (Torlakson, D-Antioch) - Provides design-build authority to the California Department of Transportation and regional transportation agencies to make construction more efficient and cost-effective.
AB 1266 (Niello, R-Fair Oaks) - Allows the California Department of Transportation design-sequencing authority for projects to make construction more efficient and cost-effective.
K-12 & Higher Education
AB 1836 (Daucher, R-Brea)/SB 1164 (Runner, R-Antelope Valley) - Places bonds for K-12 and higher education before California voters in five different election cycles, beginning in 2006 and ending in 2014. The 2006 bond proposal provides a total of $7 billion for K-12 education, and $5.4 billion for higher education.
Water & Flood Control
AB 1839 (Laird, D-Santa Cruz)/SB 1166 (Aanestad, R-Grass Valley and Machado, D-Linden) - Places a $3 billion general obligation bond before voters in 2006 and a $6 billion general obligation bond on the ballot in 2010 to support integrated regional water management and for water and flood control improvements. This bill also creates the Water Resource Investment Fund intended to provide a long-term stable funding source for investment in California's water infrastructure.
In addition, the Governor's Strategic Growth Plan includes the following legislation designed to improve California's water and flood management system:
AB 1665 (Laird, D-Santa Cruz) - Provides a stable funding source for local flood management districts and state agencies for flood management in the state system.
ACA 13 (Harman, R-Huntington Beach - Jones, D-Sacramento and Mullin, D-South San Francisco) – Introduced in 2005, this legislation amends Proposition 218 to include flood management fees in the list of exemptions from the arduous local benefit assessment process established by the proposition so that flood management fees would be treated in the same manner as other fees for necessities such as water, sewer, and garbage.
Public Safety
AB 1833 (Arambula, D-Fresno) - Places the Public Safety Bond Act of 2006 and 2010 on the ballot. Each ballot will ask the people to authorize $2 billion to be used by local governments to expand the capacity of jails. In both 2006 and 2010 $6 billion will be used for jail construction by combining the bond money with matching funds and other revenues, thereby increasing local capacity to 83,000 inmates. The 2006 bond also contains $610 million in other public safety infrastructure at the state level. The 2010 bond will include $1.1 billion for increasing state prison capacity.
Courts & Other Public Services
AB 1831 (Jones, D-Sacramento)/SB 1163 (Ackerman, R-Irvine) - Authorizes $1.8 billion in bonds for courts to go before voters over the next decade for trial courts, $800 million in 2006 and $1 billion in 2010. In addition, this bill authorizes $400 million in 2006 to seismically retrofit other high-risk state buildings and address health and safety needs at state park facilities.
Link to additional information regarding the Governor's Strategic Growth Plan (PDF FILE)
Just love ACA 13. Removes all the protections provided local, affected land owners. The state, after a simple majority affirmation by the electorate, can impose fees on property holders without due process (local, affected, voter approval).
Bonding capacity could be increased, if needed, by early payoff of existing indebtedness but the premature payment of the state's debt would hurt California's credit rating with Wall Street.
A very clever scheme. Crippled going in and wounded while trying to escape.
Not to be negative but we have some really, really, unsophisticated folks in California who exercise their franchise regularly and if this scheme gets a bare majority the Austrian will be laughing all the way home to Graz.
If I am reading this right Gov Arnold's plan leaves not room for pork in Calf govenment for the next 20 years.
For example, later in the article:
Some Democrats are not only frustrated by the governor's set of priorities--the package includes no money for new parks, affordable housing or high-speed rail--but also his usurping of the state's entire borrowing capacity.
It's an interesting idea, I hope it works out for the Gov.