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The Strategic Growth Plan that Governor Schwarzenegger introduced early this year is likely the boldest leadership move that any governor has made for decades. Why? It addresses rebuilding and repairing the infrastructure for California that since 1955 has been instrumental in supporting the incredible growth of the state. Every area of the state has seen the wear and tear brought upon our resources to transport goods, house, and educate a growing populace and economy. From a population of 13 million in 1955 to what now is 37 million and likely 46 million by 2025 something had to be done.

The Strategic Growth Plan will consist of four separate initiatives scheduled for the November 2006 statewide ballot: Proposition 1B, 1C, 1D, and 1E. The Corona Chamber supports all four initiatives. California voters will decide a 20-year investment plan leveraging $68 billion dollars of General Obligation (GO) bonds over the next 10 years to invest more than $222 billion in the state’s infrastructure. Four major areas are targets for investment; education, housing, levee repair and flood control and the largest, transportation.

The State Constitution requires GO bonds, which are backed by the State’s General Fund, to be approved by a two-thirds vote of the legislature and a approval of a majority votes on the November 2006 ballots. So, while the legislature hurdle is behind us, the voters must still approve the issue. As of November 2005, the state had almost $53 billion of outstanding General Fund debt, including $35 billion in GO bonds. In addition, about $30 billion in bonds have been authorized, but not yet issued, for projects that are in progress or not yet begun.

In 2002 Proposition 42 was passed to build a Transportation Infrastructure Fund (TIF). This year we backed a bill to close a loophole in the TIF that allowed withdrawing funds for general budget items. The loophole will be closed and the monies withdrawn from the TIF for road construction and repair will be paid back.

In addition to the transportation funding that will be allocated to our area, there will be significant funding for career technical education, charter schools, building improvements and new construction for K-12. Also there will be over $3 billion targeted for public college and university facilities. Housing funding will emphasize affordable ownership and rental housing construction.

As voters and as a Chamber it will be our responsibility to monitor progress on this important infrastructure issue and all its components. The growth of our area’s infrastructure and that of the state is at stake. Our quality of life will be deeply affected for years to come if we all work together to see this Strategic Growth Plan successfully completed and then prudently initiated. Our future prosperity is at stake.
 

In Depth: Impact of Bond Initiatives to the Corona Region

Proposition 1B: 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.

The only earmarked project included in the bond is $1.0 billion for improvements to Route 99, a 400 mile stretch of highway through the Central Valley.

Air quality

Communities in the Inland Empire suffer from some of the worst air pollution in the nation. Despite significant reductions in emissions of air pollutants, residents still breathe air that exceeds federal ozone standards over 100 days per year, on average. The SGP transportation bond includes funding and provisions that will help improve air quality in the Central Valley and statewide.

- $200 million for school bus retrofit and replacement, to reduce air pollution and children’s exposure to diesel exhaust

- $1 billion to the State Air Resources Board for emission reductions related to the movement of goods

- All CalTrans projects must meet California air quality requirements

Local road, transit and highway improvements

Riverside and San Bernardino counties will receive portions of bond funds allocated for the State Transportation Improvement Program (STIP), repairing local streets and roads, and public transit projects.  These numbers are approximate. 

- Riverside: STIP:$72,041,000, Transit: $106,118,244, Local Streets and Roads: $93,913,176

- San Bernardino: STIP:$93,758,000, Transit: $117,129,078, Local Streets and Roads: $103,643,843

Other projects

Other Inland Empire projects that might compete for bond funding include⁵:

- In Riverside area: Construct HOV lanes, mixed flow lanes and two dedicated truck lanes from Mira Loma in Riverside to the Mojave River Crossing

- In San Bernardino area: Widen I-215 to 4 mix-flow lanes and 1 HOV lane

Proposition 1D: Education

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. Of this, $1.9 billion is allocated for K-12 new construction and $3.3 billion is allocated for K-12 modernization projects. The bond also provides $3.087 billion to public colleges and universities. Figures for Riverside and San Bernardino counties.

Pending New Construction Applications                     

Pending Modernization Applications

Higher Education

University of California, Riverside

- Student Academic Support Services Building
- Culver Center for Arts construction
- Boyce Hall and Webber Hall Renovations
- Geology Building Renovations, California State University, San Bernardino
- Science Building Renovation and Addition
- College of Education equipment
- Riverside Community College District
- Norco Campus – Industrial Technology Facility
- Mt. San Jacinto Community College District (Riverside)
- Menifee Valley Center – General classroom building
- San Bernardino Community College District
- Crafton Hills College – Learning Resource/Technology Center
- Palo Verde Community College District (San Bernardino)
- Palo Verde College – Fine and Performing Arts construction
- Barstow Community College District
- Barstow College – Performing Arts Center
- Copper Mountain Community College District (San Bernardino)
- Copper Mountain College – Remodel for efficiency

Proposition 1C: Housing

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.

The median price of a home in the Riverside/San Bernardino area is $394,790, and just 17% of households can afford a median-priced home. If voters approve the SGP package, municipal and county governments and local developers can apply for funds to build low and moderate-income affordable housing. Because this process is competitive, specific SGP-funded projects are not known at this time.³

The success of Proposition 46 is a blueprint for potential SGP funding. The voter-approved Proposition 46, also known as the Housing and Emergency Trust Fund Act of 2002, provided $2.1 billion for affordable housing development. As a result, in Riverside and San Bernardino counties:

- The California Department of Housing and Community Development (HCD) has awarded the following to build or provide incentives to build homes, rental homes, and shelter spaces: Riverside County:  $50,796,862 for 4,031 units and San Bernardino County:  $28,145,960 for 1,637 units

- The California Housing Finance Agency (CalHFA) has awarded the following in down payment and mortgage assistance: Riverside County:  $4,547,937 for 733 units and San Bernardino County:  $5,448,771 for 952 units

Proposition 1E: Flood Control and Levee Repair

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

A catastrophic flood would impact all of California. Since courts have determined the state is liable for flood related damages caused by levee failures on the state/federal levee system in the Central Valley, every taxpayer would foot the bill for a disaster. Major levee failures in the Sacramento-San Joaquin Delta would disrupt water supply to the Bay Area, Central and Southern California. For example, a 6.5 magnitude Delta earthquake could result in 30 levee breaks, with economic losses of $30-40 billion and 30,000 lost jobs.

Of the total bond, $3 billion would go to the Delta and state-federal project levees. Of the remaining $1.09 billion, $500 million is for federal flood control projects outside the Central Valley; $300 million for grants to local governments for stormwater flood management, and $290 million for establishing and improving flood protection corridors and bypasses and developing accurate maps of floodplains. 

More than $800 million would go to communities outside the Central Valley, primarily the Bay Area, Southern California, and Napa. The projects listed by-county below, could potentially receive directed funding from the $1.09 billion total. 

- Riverside County would receive approximately $12.9 million: Gunnerson Pond - $1.5 million; Murrieta Creek - $5.2 million; Norco Bluffs - $3.5 million; Santa Ana River Mainstem - $2 million; Lake Elsinore Outlet- $700,000.

- San Bernardino County would receive approximately $6.1 million: Santa Ana River Mainstem - $6.1 million