Everyone likes to show off their remodeled kitchen or den, but how often do we get the neighbors up on the roof to check out the shingles or into the basement to check out the drainage pipes?
Not often. But if you don’t replace the roof or the pipes, then all that work on the inside is for naught.
Propositions 1B through 1E are part of a large-scale bond package that — along with Proposition 84 — seek to borrow $42.7 billion to update and repair the state’s roads, transit systems, parks, schools and universities, levee systems, water projects and parks while creating opportunities for affordable housing across the state. The list may not be sexy, but it is indeed what will keep the state’s house in order.
Propositions 1B through 1E are part of the governor’s public works package that was agreed upon by the state Legislature. Proposition 1A is also part of that package and solidifies previously passed Proposition 42 that calls for the gasoline tax to be only used for transportation improvements and ensures the $2 billion a year collected for it not be siphoned off for other budget needs.
The proposal has bipartisan support and Democrats had envisioned a similar proposal earlier in the year. The bottom line is that both Republicans and Democrats came to the realization that the state’s infrastructure dire needs. The only cause for concern is that the bond package of propositions 1B through 1E and Proposition 84 ask at least half the state’s voters to approve borrowing $42.7 billion to be paid off over 30 years. It is a hefty amount, but the cost of not embarking on some of these improvements may be too great. In addition, the state currently has a long-term general fund debt service ratio of approximately 4.5 percent of its $101 billion annual budget. That includes the recent bonds floated to bridge the recent budget shortfall that began before Gov. Arnold Schwarzenegger took office. With the new bonds, that ratio will rise to 6 percent of the state’s budget by 2010 and then begin to lower below 5 percent by 2015. There will be no new taxes to pay for the infrastructure improvements, but the state will pay back approximately $2 for every $1 borrowed. Considering inflation, that figures to be approximately $1.30 for every $1 borrowed. Paying up front may cost less, but is impossible for the amount of work needed.
Proposition 1E can be considered the most crucial. It proposes the state borrow $4.09 billion to rebuild the Delta’s levees and improve flood control throughout the Central Valley. The levee system’s problems received more attention after Hurricane Katrina caused the a devastating levee breach in New Orleans that caused billions in damage and much loss of life and property. Proposition 1E also provides money for flood control outside the Central Valley.
Proposition 1B is the grand daddy. It is asking permission to borrow nearly $20 billion for highway safety, traffic reduction, air quality and port security. The majority of the money — $11.3 billion — will go to reduce traffic congestion and make highway and local road improvements. Additional money will go toward public transportation, the creation of better roads for better air quality to and from our ports and better security of all our transportation systems.
Proposition 1C can be seen to work in tandem with Proposition 1B in reducing traffic congestion and improving air quality by seeking $2.85 billion for development near existing urban areas and near public transportation. It will also create new opportunities for families priced out of home ownership in addition to multifamily and other housing programs.
Proposition 1D asks for $10.4 billion for earthquake safety and new or upgraded facilities in schools, colleges and universities throughout California. It will offer relief for overcrowded schools by allowing schools to replace portable class rooms and offer $500 million in matching grants for new construction and modernization of charter schools. This should have a direct impact in San Mateo County as some school districts have been unfairly saddled with the cost of charter school facilities.
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Proposition 84 is a catch-all proposition that made it onto the ballot through signatures. It seeks $5.8 billion to flood control, safe drinking water, open space and parks. While its ambition is enviable, it tries to do too much with too little and it is vague in its message. In addition, similar propositions have been approved in the past. By eliminating Proposition 84 from the bond package and approving propositions 1A through 1E, voters will approve approximately $37.3 billion in much-needed improvements. That money will keep the state’s basic infrastructure in good condition, create jobs and provide housing opportunities. By approving Proposition 1A, voters will ensure $2 billion a year in gas taxes goes to what it was intentioned — transportation improvements. Proposition 1A will keep legislators from using money intended for one purpose for another and keep Sacramento overall more accountable.
Proposition 1A: Protects approximately $2 billion in gasoline tax earmarked for transportation projects. YES
Proposition 1B: Allows the state to borrow $20 billion for highway safety, traffic reduction, air quality and port security. YES
Proposition 1C: Allows the state to borrow $2.9 billion for housing and emergency shelter. YES
Proposition 1D: Allows the state to borrow $10.4 billion for public education facilities. YES
Proposition 1E: Allows the state to borrow $4.1 billion for disaster preparedness and flood prevention. YES
Proposition 84: Allows the state to borrow $5.4 billion for water quality, safety and supply, flood control, protection of natural resources and park improvements. NO

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