Governor expected to green light roads bond

Contra Costa Times ^ | 1/5/6 | Mike Adamick

[SmithL]

Gov. Arnold Schwarzenegger is expected to unveil a multibillion-dollar transportation bond tonight that could jump start long-delayed road projects in the East Bay.

The new largess -- anticipated to provide $25 billion for roads, levees and schools -- could help pay for new interchanges along Interstate 80, merging lanes on Interstate 680, a wider Highway 4 and a fourth bore through the Caldecott tunnel.

"I think what the bond would enable us to do is fund those projects already on our to-do list but haven't been able to get to," said Janet Abelson, president of the board for the Contra Costa Transportation Authority, which plans road work throughout the county.

While the jammed Highway 4 and the Caldecott Tunnel attract the most attention, officials hope new state money will also allow work to move forward on smaller projects, such as better merging lanes at I-680 and Highway 4, more safety improvements for Vasco Road and car pool lanes on I-80.

"There's a lot of needs," said Bob McCleary, the head of the transportation authority.

County voters approved a half-cent sales tax in 2004 to fund road work, with the expectation that the state would provide matching money. But to balance the budget, the state siphoned transportation money -- dubbed Proposition 42 funds -- into general coffers.

Last year, Schwarzenegger pumped Proposition 42 money into road projects for the first time. Combined with a new bond, transportation officials hope those matching funds will come through by the end of the year, provided the Legislature and voters sign off on the governor's plan this summer.

Following a sound defeat at the polls in November, when voters rejected his "reform" measures, the Republican governor shifted his emphasis to shoring up the state's beleaguered infrastructure, such as roads and levees.

He is expected to release more detailed proposals during his State of the State Speech tonight. Democrats appeared ready to embrace his plans, considering leaders in both houses of the Legislature had already proposed bond measures of their own.

"We have an obligation to act and act quickly and intelligently to meet the challenges in California," said state Sen. Tom Torlakson, D-Antioch, head of the Democratic caucus. "We want to get back to basics."

Both sides agree on the idea of a bond, but paying off the bond debt is another matter. While debt payments vary depending on length of time and interest rates, the Legislative Analyst's Office estimated for recent 30-year bond sales that the state must repay $1.25 million for each $1 million borrowed.

Torlakson has long pushed for a higher gas tax and has said Californian's might support a quarter-cent sales tax, so long as the money is dedicated to fixing roads and easing commutes. A poll by the California Alliance for Jobs, which lobbies for road work, supports this contention.

"I think Californians are willing if they know they are going to get a benefit back," Torlakson said.

The governor's plan, however, is expected to pay off bond debt in other ways, such as through toll roads or charges on shipping containers. The governor has long maintained that road users should pay for the improvements that benefit them.

"We believe raising taxes does not necessarily have to be a part of a reasonable plan," said H.D. Palmer, spokesman for the governor's Department of Finance. "With a broad mix of programs -- education, transportation, levee protection -- there will be a broad array of funding mechanisms."

Once the governor unveils his plan tonight, legislative leaders are expected to convene committees to hash out compromises over funding and other competing bond measures. A bond proposal could head to voters as early as June. Insiders expect the June bond to be the first in a series of infrastructure bonds voters could be asked to approve, however.

[SmithL]

Your tax dollars at work.

[Carry_Okie]

To anybody who thinks that the bulk of this bond will be for road repair and improvement, I have a bridge to sell you.

Go, Arnold...

...away, as far from California as you can get... please.

How about Patagonia? I understand that it's hip.

[calcowgirl]

Below is from email alert, January 3, 2005.


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The Legislative Analyst's Office has just issued the following report:

The State’s Infrastructure And the Use of Bonds: A Primer

There has been much interest recently both by the Governor and the Legislature in investing in the state’s infrastructure and using bonds to do so. This reflects both the state’s large current and future infrastructure needs and the key role that bonds will inevitably have to play in financing them. This brief answers a number of common questions related to using bonds to fund infrastructure. These questions include the overall nature of the infrastructure needs facing California, the different options for paying for them, and key issues and concerns associated with using more bonds. (16 pp.)

Available in the following formats:

HTML:
http://www.lao.ca.gov/2006/infrastructure/infrastructure_010306.html

Adobe Acrobat:
http://www.lao.ca.gov/2006/infrastructure/infrastructure_010306.pdf