About the Strategic Growth Plan

On Friday morning, the California Legislature approved a historic infrastructure package.  The following is more information on four general obligation bonds: education, housing, levee repair/flood control and transportation.

The Strategic Growth Plan education proposal authorizes the placement of a $10.4 billion general obligation bond to fund K-12 and Higher Education on the November 2006 ballot.

Highlights

Career Technical Education: Provides $500 million in supplemental grants for facilities.

• This is the first time in state history that funding for Career Technical Education is included in a state bond.
  
• Funding will be applied to new facility construction and reconfiguration.

Charter Schools: Provides $500 million for facilities.

• This is the largest state bond funding for charter school facilities in California history.
  
• The bond’s requirements limit the reduction of school district eligibility when new charter facility construction is authorized, and requires school districts to consider existing surplus facilities in accordance with current law.

Overcrowded Schools: Authorizes the State Allocation Board to make grants to overcrowded schools.

• The bond is expected to fully fund all projects in the pipeline in 2006-2008 bond cycle, accommodating the anticipated rise in student population over this timeframe.

• Grants would be available to replace a portion of portable classrooms at overcrowded schools with new hard construction permanent facilities.
  
• Overcrowded is defined as having a pupil density equal to or greater than 175% of the current guidelines. 

Seismic Safety: Creates a new seismic safety program with up to $200 million made available to those schools identified as having the highest risk for potential seismic damage.

Higher Education: Provides $3.087 billion to public college and university facilities.

• $1.580 billion for the University of California and California State University systems.
  
• $1.5 billion for California Community Colleges. This is the highest bond allocation to community colleges in state history.

K-12

Program / Total Funding

• New Construction / $1.9 billion

• Modernization - $3.3 billion

• Career Technical - $500 million

• Charter Schools - $500 million

• Overcrowded Portables - $1 billion

• Small Schools - $200 million*

• Seismic Safety - $200 million*

• Green Schools - $100 million

• Joint Use Facilities - $29 million

• Total ($ in billions) - $7.329

*Amounts for small schools and seismic safety are not added to totals, but are set-aside within the new construction and modernization amounts.

Higher Education Institution

Total Funding University of California $890 million

California State University $690 million

Community Colleges $1.5 billion

Total ($ in billions) $3.087

Housing Program

The Strategic Growth Plan housing proposal authorizes that a $2.85 billion general obligation bond providing homeownership, rental, and permanent housing opportunities be placed on the November 2006 ballot.

Highlights

• Affordable Homeownership: $725 million to help an estimated 23,600 families become or remain homeowners.


• Includes funding for the Building Equity in Neighborhoods Program, CalHome, and the.California Downpayment Assistance Program.
  
• Affordable Rental Housing Construction: $345 million to provide affordable rental housing to an estimated 4,000 families.
  
  • Includes rental housing for lower income workers, the elderly, the disabled, and veterans.

• Farm Worker Housing: $135 million to provide rental and affordable ownership opportunities for over 2,800 farm worker families. 

• Homeless Permanent Housing Construction: $245 million to build over 2,400 permanent housing units for the homeless, those transitioning out of homelessness, and foster care youth. 

• Homeless shelter housing construction: $50 million to construct and expand shelter of last resorts and transitional housing for the homeless.

An investment of $1.8 billion

• Could produce homes and shelter spaces for more than 32,000 families or individuals.
• Would leverage an estimated $8.9 billion in other private and local funding.
• Would create an estimated 87,000 full time jobs, almost $3.3 billion in wages, and approximately $506 million in combined federal, State, and local tax revenues over the award and construction period.

Levee Repair and Flood Control

The Strategic Growth Plan levee proposal authorizes the placement of a $4.09 billion general obligation bond to repair and maintain levees and improve the flood control systems in the state on the November 2006 ballot.

Highlights

Evaluation, Repair and Delta Levee Maintenance: $3 billion

• Will fund urgent repairs and essential improvements of levees and other flood control facilities in the Central Valley and Sacramento-San Joaquin Delta.
• Funds will also leverage federal and local dollars to fund flood prevention projects and improve disaster preparedness.
  
• Bond funds will be used for programs such as:

Evaluation and repair of the State/federal flood control system, addressing ongoing erosion, seepage, and stability distress.

Modifications and improvements to increase flood protection for urban areas, such as Folsom Dam modifications, American River Common features, South Sacramento streams and other projects.
Ongoing local assistance for Delta Levee Subventions and special flood control projects to reduce the risk of Delta levee failure.

Flood Control Subventions: $500 Million

• Will help pay the state’s share of flood control projects outside the Central Valley.  Currently, the State owes approximately $160 million to projects that are already underway or have been completed.  Bond funding, combined with other funding mechanisms, would cover anticipated subvention payments for the next 10 years. 

Flood Protection Corridor, Bypasses and Mapping: $290 million
Could be used for:

• Creation of new levees, and the construction and preservation of setback levees, flood corridors, and bypasses.
• Completion of flood hazard and alluvial fan floodplain mapping necessary for proper flood infrastructure investments.

Storm Water Flood Management: $300 Million

• Will provide grants to local entities to cost share storm water runoff projects, consistent with an integrated regional water management plan.
  
• Projects in the State Plan of Flood Control are not eligible for these funds.

Levee repair and flood control

Program / Total Funding

Evaluation, Repair and Levee Maintenance: $3 billion

Flood Control Subventions: $500 Million

Flood Protection Corridor, Bypasses and Mapping: $290 million

Storm Water Flood Management: $300 million

Total ($ in billions): $4.09

Transportation

The Strategic Growth Plan transportation proposal authorizes the placement of an $19.9 billion general obligation bond to fund repairs, reduce congestion, improve bridge safety, expand public transit and improve port security on the November 2006 ballot. The bond proposal also authorizes public/private transportation partnerships, application of the Design-Build method for these projects, and legislation to streamline the environmental review process.

Highlights

Relieving congestion: $4.5 billion

• Funds will expand capacity, enhance operations, and improve travel times in high-congestion travel corridors.

Public transit: $4.0 billion for public transit, intercity and commuter rail, and waterborne transit operations.

• Projects include new capital outlay, rehabilitation, capital service enhancements and improvements to safety, modernization, and bus rapid transit projects.

Sea, land, and airport infrastructure: $3.1 billion to relieve traffic congestion along major trade corridors, improve freight rail facilities, and enhance the movement of goods from port to marketplace.

• $1.0 billion is designated for air quality improvements that will achieve emission reductions from activities related to port operations and freight movement.
  
• $100 million will also be available for port, harbor, and ferry terminal security improvements.

State Transportation Improvement Program (STIP): $2.0 billion to augment funds for STIP, a five-year capital improvement program for state and regional transportation projects.

Route 99: $1.0 billion for improvements to this 400 mile stretch of highway through the Central Valley.

Local streets and roads: $2.0 billion for improvements to local transportation facilities that will repair and rehabilitate local streets and roads, reduce local traffic congestion, improve traffic flow or increase traffic safety. 

Transit safety, security, and disaster response: $1.0 billion to provide increased protection against security and safety threats.

• Funds will also increase the capacity of transit operations to move people, goods, emergency personnel, and equipment during and after a disaster.

Matching funds for counties: $1.0 billion for counties that have raised local money for transportation projects.

Highways: $750 million for highway safety, rehabilitation, and pavement preservation projects.

• Includes $250 million for traffic light synchronization projects and other technology-based improvements to improve safety operations and the capacity of local streets and roads. 

School bus retrofit and replacement: $200 million for to reduce air pollution and to reduce children’s exposure to diesel exhaust. 

Matching funds for seismic safety: $125 million to provide to complete seismic retrofits on local bridges, ramps, and overpasses.

Railroad infrastructure: $250 million for railroad crossings and the construction of bridges over rail lines.

Transportation Program

General Obligation Spending

Congestion reduction: $4.5 billion

Public Transit: $4.0 billion

Seaports, land ports, airports: $3.1 billion

State Transportation Improvement Program: $2.0 billion

Route 99: $1.0 billion

Local streets and roads: $2.0 billion

Transit safety, security and disaster response: $1.0 billion

Matching county funds: $1.0 billion

Highways: $750 million

School bus retrofit: $200 million

Matching seismic funds: $125 million

Railroad infrastructure: $250 million

Total ($ in billions): $19.9 billion