Photo courtesy of the governor’s office Lawmakers are considering the complex water fixes in a special session, the third one called this fall by Gov. Arnold Schwarzenegger.

SACRAMENTO — Gov. Arnold Schwarzenegger and legislative leaders say their $11.1 billion water bond is an essential investment for California’s future, but it may be a hard sell to voters.

California already is saddled with debt, and the bond measure that will appear on the November 2010 ballot is filled with special-interest earmarks added in the late hours through backroom dealmaking.

The bond ballooned by $1.7 billion over two days while legislative leaders sought to win the votes they needed to pass the measure.

“It is a little bit of a Catch-22,” said Senate President Pro Tem Darrell Steinberg, D-Sacramento. “We did go into this thinking it would do better if we kept the financing piece smaller and yet, as we moved toward the finish line, I think we recognized there’s a whole lot of unmet need.”

Schwarzenegger is expected to sign the bond and four companion bills that would change how the state uses water and manages the Sacramento-San Joaquin Delta, the estuary that funnels fresh water from Northern to Southern California, where most people live.

The Republican governor described the bond as a wise investment to upgrade California’s antiquated water system and meet the needs of a growing population. Schwarzenegger noted the bond had fluctuated between $8 billion and $12 billion during the past few months of negotiations.

“What is of interest to me is the result,” Schwarzenegger said at a news conference Wednesday. “The result is a great package of approximately $11 billion.”

The bond was initially presented to senators at a total cost of $9.4 billion. The biggest increase of $1 billion was inserted by the Assembly late Tuesday to satisfy Southern California area Democrats who complained the bond favored rural areas.

Funding to boost water recycling and groundwater supplies was added at the request of the mayors of Los Angeles, San Diego, San Jose, Fresno and Santa Ana, according to a copy of an Oct. 23 letter sent to the governor and legislative leaders.

Assembly Speaker Karen Bass, D-Los Angeles, said it was necessary to include resources that represent the entire state.

“The bond that came over from the Senate was not complete,” Bass said. “We absolutely had to add the resources so the major population centers would be eligible for funding.”

Among the earmarks tucked into the bond by Steinberg was a $10 million allocation to build a tolerance center in Sacramento featuring an aquarium and botanical garden. It was removed by the Assembly early Wednesday, and Steinberg acknowledged it was a mistake.

Lawmakers wrote the bond so only half could be sold before July 1, 2015, aiming to minimize initial costs to the state’s strapped general fund. Assemblywoman Anna Caballero, D-Salinas, said the cost of the bond would be negligible and there would be no disastrous impact on the general fund.

Jason Dickerson, director of state administration at the Legislature’s nonpartisan analyst’s office, said voter approval of the water bond would add to California’s massive debt, which could soon require 10 percent of state revenue to pay down.

Debt service on the water bond alone would likely cost between $725 million to $809 million a year after all the bonds have sold, he said.

Several unions expressed concern about the bond, including a teachers union that fears a dollar used to pay off debt is a dollar less for classroom education and other government services.

Willie Pelote Sr., a lobbyist with the California branch of the American Federation of State, County and Municipal Employees, said taxpayers shouldn’t have to foot the bill for a bond that benefits farmers and Southern California cities.

“It’s absolutely wrong and irresponsible,” Pelote said.

Department of Water Resources director Lester Snow said the bond would stimulate the economy by encouraging local spending and jobs. Previous water bond dollars have led to an additional $2 to $3 in local construction spending, he said.

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Associated Press Writer Judy Lin contributed to this report.

Reactions to water bill

“Water is the lifeblood of everything we do in California. Without clean, reliable water, we cannot build, we cannot farm, we cannot grow and we cannot prosper. That is why I am so proud that the legislature, Democrats and Republicans, came together and tackled one of the most complicated issues in our state's history. This comprehensive water package is an historic achievement. “I particularly want to applaud the leadership of Senate President Darrell Steinberg. He has been a tireless leader, a relentless  advocate for the environment and a true statesman.”

— Gov. Arnold Schwarzenegger

“Thanks to the California legislature and Governor Schwarzenegger, Californians now have the opportunity to choose a more secure and sustainable water future.  This landmark package is a critical step toward bringing California's water infrastructure into the 21st century while restoring California's Bay Delta, on which millions of Californians depend for clean drinking water and their livelihoods.  I applaud the leadership, courage, and vision of everyone who helped bring this desperately-needed legislation across the finish line.  We will continue to need all hands on deck — at the federal, state, and local levels — in the coming months as we face the possibility of a fourth year of drought and sobering water realities."

— Secretary of the Interior Ken Salazar 

“From an environmental standpoint, the Delta’s been going to hell-in-a-hand-basket, and the 24 million Californians who rely on the Delta for water are one catastrophe away from a major crisis. “If we do nothing, there’s a two out of three chance the Delta will collapse in the next 50 years,” said Simitian. “That’s 24 million Californians without water, and $40 billion in economic consequences. The Delta is California’s Katrina waiting to happen. With this legislation, we are taking significant steps to prevent that from taking place.”

– State Sen. Joe Simitian, D-Palo Alto

“The historic water legislation we passed today provides hope for restoring the Delta, saving the Salmon and protecting California’s world-class agriculture industry. While I represent a city that is fortunate to have a secure water supply, I know the rest of the state is not as lucky. Water is not a regional issue, it’s not North versus South, agriculture versus environmentalists, Republican versus Democrat, people versus fish — water is a human rights issue in the simplest form. I’m proud of what we’ve accomplished today and proud that we are protecting California’s standing as the world’s eighth largest economy.”

— Assemblywoman Fiona Ma, D-San Francisco