CA: Governor would consider bond to fix levees

Stockton Record ^ | 9/21/05 | Hank Show

[NormsRevenge]

SACRAMENTO -- Gov. Arnold Schwarzenegger said Tuesday he would consider supporting a voter-approved bond to help repair California's aging levee system.

Hurricane Katrina's horrific damage and the subsequent levee break in New Orleans have focused attention on the Central Valley's century-old levees, which protect thousands of homes and millions of acres of prime farmland.

A Record investigation in May found that in San Joaquin County alone, more than 30,000 new homes have been built or approved by local governments in flood-prone areas since 1997, when the last major flooding hit.

In an interview Tuesday with The Record, the governor softened his opposition to public borrowing in this case because of the immense physical and legal costs a major levee break would cause.

He had resisted new borrowing earlier this year, saying California's credit is strained enough from existing bond issues.

Earlier this year, Senate President Pro Tem Don Perata of Alameda County proposed a massive bond issue for roads and other infrastructure that would include $1 billion for levee repairs. It went nowhere.

Schwarzenegger's willingness to consider the proposal could revive it, but it would still need support from Republicans in the Legislature. A bond bill needs GOP votes to pass.

Schwarzenegger has taken a more active interest in California's levees than any other governor in recent years. One reason: his visit to the Jones Tract levee break west of Stockton in June 2004. Schwarzenegger said it shook him.

"I was very upset about the fact that so many people had to suffer because we as a state did not keep up with the levees," he said. "It was a failure of the state and local government. It was a lack of leadership. And I said it should never happen again."

No sooner had that crisis faded when Schwarzenegger's administration was hit with a $464 million legal settlement from a break in the Yuba County community of Linda in 1986.

"If I would have taken a half a billion dollars, I could have rebuilt and strengthened half of the 2,300 miles of levees," he said. "So it just shows you to be offensive and be proactive is much more cost-effective than to go and pay later on those huge kind of penalties and settlements and court cases and all those kind of things."

Schwarzenegger's Department of Water Resources sponsored legislation dealing with flood relief this legislative session, but it stalled in the face of opposition -- largely Republican -- to proposals that would allow local water districts to raise flood-control funds through fees.

Schwarzenegger said local money must be part of any solution, because the state cannot shoulder the load alone.

"We have to go, and we have to also create a way for the water board and the authorities to be able to find ways of creating the revenues," he said.

He said he's frustrated with a Legislature seemingly incapable of tackling complex issues, and not just involving levees.

"When it comes to big issues, they just can't do it," he said.

Schwarzenegger said he hopes to avoid borrowing if voters pass Proposition 76, which would allow him to re-jigger state spending and short-circuit spending formulas if spending outpaces revenue. With that in place, Schwarzenegger said he might be able to find state money to match federal flood-relief dollars without a bond.

Nevertheless, he said, "I think that in this particular case, right now I think it is important that we find the money as quickly as possible from the state and to get the matching funds from the federal government and also locally.

"We've got to spend on those things that deal with the lives of people"

Details of the legislation, AB1665, can be found at www.leginfo.ca.gov

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Web exclusive! Interview Q&A Gov. Arnold Schwarzenegger talked with The Record’s capitol bureau chief Hank Shaw, Oakland Tribune reporter Steve Geissinger and several other reporters Tuesday about the crisis facing California’s aging levees, which protect thousands of homes and millions of acres from the state’s life-threatening winter floods.

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Here is the conversation:

HANK SHAW: Governor, I wanted to ask you a policy question. First I want you to remember what was going through your mind when you where standing on that levee in Jones Tract in 2004, watching all that water rush through. Probably it was a pretty new experience for you. And I’m wondering if you remember what you were thinking at that point?

GOV. ARNOLD SCHWARZENEGGER: I was saying to myself I’m going to go home, or I should say to Sacramento, which is kind of my home, that I would come to Sacramento and I would bring my team together and talk about why did this happen and how do we prevent it, so that it never happens again?

And that’s exactly what I did, because I was very upset about the fact that so many people had to suffer because we as a state did not keep up with the levees. It was a failure of the state and local government. It was a lack of leadership. And I said it should never happen again.

And then not long after that, I got hit again, which was with the settlement of the lawsuit that dates back into the 80s -- the flood that was happening in Linda. There was huge floods and it was also because of a failure of our levees. Our levees are not up to date. So therefore the state had to pay a half-billion dollars. If I would have taken a half a billion dollars I could have rebuilt and strengthened all the levees -- half of the 2,300 miles of levees I could have done.

Because we had estimated in the meantime that it would probably take a little bit more than a billion dollars to do the whole job.

So it just shows you to be offensive and be pro-active is much more cost-effective than to go and pay later on those huge kind of penalties and settlements and court cases and all those kind of things.

That’s why I introduced legislation this year in February…since then we have talked to them, we have talked to the legislators but when it comes to big issues they just can’t do it.

SHAW: What was your reaction when you found out in the end of the session when you tried (passing the legislation) one last time and nothing happened?

SCHWARZENEGGER: Well at the end of the session (they tried) only because I warned them again and I said, “guys, did you see what happened at Hurricane Katrina? There was damage done from one to 10. It was a six because of the storm. But the next four, up to a 10 damage, which was the ultimate anyone could even imagine, was done because the levee broke.

STEVE GEISSINGER: Will you introduce legislation again this coming session?

SCHWARZENEGGER: Absolutely. There were a few little things done, and you know, we put twelve, I mean $9.5 million aside to do some fixing quickly and some upkeep. So we may see some erosion and fix the -- you know, it’s kind of like running around and putting Band-Aids on it. But we put the money aside, because I am concerned.

And as a reminder I am concerned about a lot of things about this state that is not getting done. As much as our levees are not getting done, our hospitals are also not earthquake proof. There’s patients lying in there, and I’ve been saying this up there, “guys, we’ve got to go create some revenues for this infrastructure.”

This is what my reform is all about. It is a budget reform that makes us live within our means so we can put money aside for these very important projects so that we can go and say, OK, the state is going to put in $300 million for the levees, the federal government is going to put in three hundred (million) and local government should raise three hundred (million). Whatever, we come up with a formula.

But we’ve got to spend on those things that deal with the lives of people. And down the line it’s going to cost us extra.

Then they fight and argue over the 700 miles of private levees (in the Delta). What do I care? When the damage is done and the levees break, all of a sudden that water is not going to stay on private land, it’s going to all the farms and you know what else if there’s a huge levee break? The water will be coming gushing down, flooding the area and it will not have enough force to press out the salt water.

(from San Francisco Bay) And then the salt water’s going to come in, and that will create damage for years to come.

GEISSINGER: Your real suggestion would be bonds to do seismic and levee –

SCHWARZENEGGER: Work it out with the federal government because the federal government is of the position that if you put up some money, we put up money. So it’s a very simple formula. We have to go and we have to also create a way for the water board and the authorities to be able to find ways of creating the revenues, and –

GEISSINGER: So you don’t really want a voter-approved bond on this?

SCHWARZENEGGER: Well, there could be an exception. I mean, we have looked into all of those different areas. There could be exceptions to have voter-approved bonds to have just, you know, take it out of general funds. I think that in this particular case right now I think it is important that we find the money as quickly as possible from the state and to get the matching funds from the federal government and also locally.

The key thing is to let the people know as quickly as possible that they live in a dangerous area so they can get flood insurance.

GEISSINGER: And work it out with the private levee owners?

SCHWARZENEGGER: It’s all about bringing people together. Believe me, the private levee owners all will be happy to do some leadership -- people are being pulled together. But the legislators just have to focus on it. So we will of course bring it back in January again because it is very important.

[Amerigomag]

I'll bet the thought never crossed Schwarzenegger's mind once.

Cut spending and fix the leves with the savings.