PUBLISHED 10/29/2006

Propositions 1A through 1E are a  series of bond measures placed on the ballot by a two-thirds vote of each house of the Legislature and signed by the governor. We urge a yes vote on each —  both  because of their worth and their history.

These bonds evolved from Gov. Schwarzenegger’s State of the State speech. He proposed a series of infrastructure bonds called the Strategic Growth Plan that over 10 years would amount to a $222 billion investment in the state’s infrastructure. Although most of the proposed projects had some merit, the plan ran into intense opposition for two reasons:

• The $222 billion, which does not include the pay-off on 30-year general obligation bonds.

• The fact that the series as a whole would seriously hamper the state’s ability to respond to new urgent needs over the coming decade. But rather than simply hurling insults at each other — which is what happens too often in Sacramento — the  state’s top political leaders of both parties in both houses of the Legislature and the governor negotiated a productive, well thought-out series of top-priority needs.

Each measure is voted on separately.

The cumulative total face value of Proposition 1A though 1E is $37.2 billion in general obligation bonds maturing over 30 years. Depending on the timing of the sale and interest rates, the total payoff  would be approximately twice the face value of the bond.
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Proposition 1A

Proposition 1A is not a bond issue and incurs no direct cost. If enacted, it would make it much more difficult for the Legislature to raid revenues from excise and sales taxes on motor fuels — approximately $3.4 billion per year — for non-transportation expenditures.

There are adequate provisions to allow some funds to be borrowed by the state in a fiscal crisis, with pay-back provisions.

By ensuring that the use taxes involved are used properly, it reduces the need for more transportation-related bond acts.

Proposition 1B

Proposition 1B would sell $20 billion in bonds to help fund improvements for public transit and security; safety improvements to highways, freeways and bridges; port security projects; and provide funds for transportation disaster planning. Specifically, $1 billion is reserved for Highway 99 enhancements for safety, capacity and operations.

Proposition 1C

Proposition 1C is a $2.8 billion bond to help fund shelters for battered women and children, housing for low-income senior citizens, homeownership assistance for disabled veterans, farmworker housing, homeless shelters and accessibility improvements for apartments for the disabled.  Cost to audit and administer the programs would be paid for by bond funds.

Proposition 1D

Education programs from kindergarten through the University of California are the beneficiaries of the $10.4 billion public education facilities bonds. Seventy percent of the funds would be for grades K-12 to modernize schools, reduce overcrowding, improve vocational education facilities and provide partial funding for charter schools (a 50 percent local matching grant is required). The remaining $3 billion would fund improvements for facilities and equipment for the state’s triple-tier higher education system — community colleges, California state universities and the University of California.

Proposition 1E

Proposition 1E is a crucial, but relatively inexpensive, $4.1 billion bond to fund flood control projects. The vast bulk of the money — $3 billion of the total — will be spent either for projects in the Central Valley or for levee repairs that protect water sources and land downstream in the valley.

Urban valley projects include sewer and storm drain improvements, enhancing wastewater system capacity and the like. The remaining funds specifically are reserved for projects outside the valley.

Virtually every Californian will benefit from one or more of the projects covered by these  five well-crafted proposals, which is why it is appropriate that they are general obligation bonds.

We urge a yes vote on each.