Posted on 10/04/2005 9:17:19 AM PDT by NormsRevenge
SACRAMENTO — Gov. Arnold Schwarzenegger and legislative leaders are actively considering another round of government borrowing — this time to pay for massive building projects such as fixing freeway and cargo port bottlenecks as well as shoring up delta levees and hospitals that could fail in an earthquake.
A self-described fiscal conservative who has refused to raise taxes, Schwarzenegger believes California needs a long-term plan that includes billions in new spending on infrastructure and changes in how the government allocates such money, administration sources and legislators said.
Last year, Schwarzenegger successfully pushed a $15-billion bond to help the state balance its shaky budget, but that voter-approved borrowing paid for government services instead of building projects. Currently, about 6% of the state budget goes to paying off debt — close to the limit that some Wall Street credit agencies consider acceptable.
--snip--
Behind the scenes, the administration is drafting a comprehensive infrastructure plan that could include money to inspect and improve 1,600 miles of levees, reduce air pollution and jump-start a long list of road and freeway projects.
Without confirming any specific plans, the governor's spokeswoman Margita Thompson said: "California cities are some of the fastest growing in the country and we absolutely need to plan and prepare for that growth. We'll be looking at what is happening in cities, in other states and other countries to determine what best practices fit California's unique situation."
More than 100 transportation organizations and agencies joined administration officials at a workshop in Monterey on Friday. Participants in the meeting said they got a clear signal that the administration was putting together a bond measure. The officials put together a list of billions of dollars worth of construction initiatives, many more than could be funded with the resources currently available in the state budget.
(Excerpt) Read more at latimes.com ...
How much have the construction lobbies been giving him?
But if you look at the state of the freeways, you would agree that there needs to be more money spent on maintence of the roadways. The taxes from gasoline sales should all go into a fund that is only used for roadways. Not for bicycle paths, public transportation such as subways and trains, etc.
I like them cutting other spending to pay for this stuff.
As it is, between California and the Federal retirement pensions that start for some at only 50 years old, there is no money to pay for that and we are going to have quite a crisis.
Don't look for the inheritance tax to go away in our lifetime folks.
I thought it does.
Arnold needs to scale back state regulations to help encourage the building of nuke plants, refineries and reservoirs.
Living on the edge.
New government borrowing would pose distinct political problems for Schwarzenegger, particularly among his own party. Senate Republican Leader Dick Ackerman of Irvine said his members rejected the idea of an infrastructure bond this year because they believe California has overextended its debt capacity.
At least there is some common sense left in Sacramento.
According to the nonpartisan legislative analyst's office, the percentage of the state's budget that goes to pay off debt has reached 6%. Over the next few years even more debts will come due. By 2009, according to the analyst, paying back debt will account for nearly 7% of the state budget.
This is staggering.
If the economy turns down the state will become a fiscal train wreck, on a scale never before seen.
queue the Titanic Orchestra..
we're just a Big One away..
Oh he's in trouble now! Doesn't he know that everything is hunky dory now that Arnold has saved us?
Good thing it was Ackerman. If Angelides had said that the State was overextended we'd be "with the Democrats" unless we disagreed. Good thing that they so seldom say anything accurate, and when they do it's usually for the wrong reasons.
By 2009, according to the analyst, paying back debt will account for nearly 7% of the state budget.
And that is without the $50-60 BILLION in new borrowing Arnold wants for us.
Whoooooooop!!! Dere it is!!!
I'm sure our favorite GOP Big Tent shill, FairOpinion, will be along at any moment to explain why a debt payback rate of 7% really isn't a problem...
(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)
(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)
• The state's ports could see a big infusion of cash in the plan to fix railroad and freeway links to harbors. Money could also be used to help container delivery companies buy trucks that are less polluting, and create a more comprehensive "cold-ironing" system that allows container ships to turn off their dirty diesel generators while in port, among other environmental plans.
Why is it that every time I hear "public-private partnership" I see the money disappearing?
• Some of the projects could be paid for with state revenues or fee increases on various industries that would benefit from the improvements. They also are looking for better ways to spend such government money, including partnerships with private industry and local governments, and streamlined building and designs.
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