CA: Legislature approves record public works spending plan - $37.3 billion package

ap on San Diego Union - Tribune ^ | 5/5/06 | Samantha Young - ap

[NormsRevenge]

SACRAMENTO – State lawmakers early Friday approved a series of bills that would place a record public works spending plan before voters in November, reviving a proposal that had broad public support but failed to pass the Legislature earlier this year.

The $37.3 billion package would be the largest bond issue in California history and now goes to Gov. Arnold Schwarzenegger.

The governor, who proposed an even larger spending plan in January, called the votes in each house “a landmark accomplishment that will yield benefits for generations to come.”

“For the first time in a generation, we are making a real investment in our state's future,” he said in a statement issued shortly before 3:30 a.m. Friday, after the votes in the Assembly sent the bills to his desk.

The version passed by the Assembly and Senate asks voters to approve four propositions: $19.9 billion for roads and transit projects; $10.4 billion for school and university buildings; $4.1 billion for flood control; and $2.85 billion for affordable housing projects.

“The Legislature came together and put its arms around an investment that hasn't been made in decades,” Assembly Speaker Fabian Nunez said.

State Sen. President Pro Tem Don Perata said the projects funded through the bond package will have an impact on Californians' daily lives.

“It's a good, solid piece of investment that will help fortify California's middle class,” he said.

Schwarzenegger had made passing a massive public works spending plan the centerpiece of his re-election year agenda. During his state of the state address in January, the Republican governor proposed selling $68 billion in bonds to help pay for $222.6 billion in spending over 10 years.

An attempt to place a smaller bond measure on the June ballot failed in March when lawmakers and the governor could not reach a compromise. Despite the legislative setback, polls showed that Schwarzenegger's proposal to upgrade the state's highways, bridges, schools, levees and water systems had broad public support.

He had been involved in the talks between legislative leaders in recent weeks, even as he remained in the background Thursday while the parties negotiated the final details.

Lawmakers of both parties wanted to strike a deal before they began negotiations over next year's state budget. Those talks will begin after the governor releases his revised spending plan next week.

The package passed by the Assembly and Senate is only about half the amount of borrowing originally sought by Schwarzenegger. But the governor said he was pleased with the result, thanking leaders of both parties and praising the bipartisanship that ultimately led to the deal.

The votes of at least two Republicans in the Senate and six in the Assembly were required to get the two-thirds majorities required to approve the bond bills.

Assembly Republicans had wanted some rollbacks in environmental reviews for construction projects and greater use of contracts in which one company both designs and builds a project.

The Senate passed bills related to both those policy initiatives. But Assembly Republicans refused to support the bill dealing with the so-called design-build provision for new construction, in part because they were not happy with the language.

Both houses also approved a bill allocating $500 million from state reserves for immediate levee repairs and a constitutional amendment to protect Proposition 42 gas tax money for road projects.

“It's about time we stepped up and made the investment,” said Assembly Minority Leader George Plescia, R-La Jolla.

[calcowgirl]

They seem to get their revenue from lots of public sources (i.e. taxpayers)

http://partners.guidestar.org/cadoj/controller/searchResults.gs?action_gsReport=1&npoId=116982&ctn=41065

(Click on the Form 990 logo in the upper right corner and you can read their IRS filings for the past 5 years or so. It lists officers, directors, assets, major grants, major expenses, etc.)

http://www.rcaa.org/fiscal/03audit.pdf

(snip)

P.7-8:
The Redwood Community Action Agency, Inc. (RCAA) was designated the Community Action Agency for Humboldt County on July 1, 1980. The purpose of this organization is to mobilize and coordinate anti-poverty resources within Humboldt County and to preserve land for scenic, scientific educational and open space opportunities.

The Organization is a not-for-profit organization that is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code.

[goldstategop]

I would have liked to see it blocked but voters should be allowed to decide how much of this new infrastructure funding is necessary to the state's future.

(Denny Crane: "Every one should carry a gun strapped to their waist. We need more - not less guns.")

[calcowgirl]

Here's an interesting tidbit from today's FlashReport

BIPARTISAN BIG BONDS

I know that everyone is expecting me to come out of the chute decrying the BIG BONDS coming down the pike for the November ballot. Fear not, you will hear a lot from me about these packages. I am in the process of studying what is IN them. You know, a process that the State Legislature didn't bother to go through.

I spoke to a lot of legislators (mostly who voted against the bonds, but some voted for one here and there) and they all said the same thing -- they were extremely unhappy with the process. The late night vote, the pressure to vote without a thorough understanding of what it was for which they were voting. I'll be writing more about this as well.

I'm also still trying to figure out how this package passed muster with Assembly Republicans. Was all of the talk in the spring just for show? I will also be trying to analyze exactly how the politics of BIG BONDS is going to play out throughout the summer and fall. For example, today the Governor is touting the bonds with Oakland Mayor Jerry Brown, the Democratic candidate for State Attorney General (yeah, there's Delgadillo, but he's more like a speed-bump for Brown). How does it work from here? Where do Republicans fit-in who support the Governor over his Democratic rivals, but very much oppose some or all of the BIPARTISAN BIG BONDS?

Take the Housing Bond component, where just the minimum number of Republicans supported the bill (much to my dismay I must add)... Seems like the BIPARTISAN BIG BONDS fallout is just beginning for the GOP. I'm not saying that the Governor supports Jerry Brown for AG, but it begs the question of how we are going to run a 'contrast campaign' with this bond package being a central theme. Brown's appearance today will not be the only time this comes up.

[Czar]

"BIPARTISAN BIG BONDS"

Yes, a very interesting tidbit. The RINOs have a lot of explaining to do.

[heleny]

"Housing and Emergency Shelter Trust Fund Act of 2006" and in the same square under those words, the following in 8-point type:
"For the purpose of providing shelters for battered women and their children, clean and safe housing for low-income senior citizens; homeownership assistance for the disabled, military veterans, and working families; and repairs and accessibility improvements to apartment for families and disabled citizens, the state shall issue bonds totaling two billion eight hundred fifty thousand dollars ($2,850,000,000)

Hey, there's a typo in there.

Two billion eight hundred fifty thousand dollars is $2,000,850,000.
Two billion eight hundred fifty million dollars is $2,850,000,000.

I wonder which one they mean, although I guess it's just small change to the wasteful legislators.

[calcowgirl]

Hey, there's a typo in there.

Good catch!

I wonder which one they mean.

The larger one, of course! ;-)
(Actually, the larger is correct, as stated in various other documents and communications put out by the legislature.)