THE CALIFORNIA CLEAN WATER, CLEAR AIR, SAFE
NEIGHBORHOOD PARKS, AND COASTAL PROTECTION BOND ACT OF 2002
Legislative Bond Act
THE QUESTION
Should the state borrow two billion six hundred million dollars
($2,600,000,000) through the sale of general obligation bonds for
development, restoration, and acquisition of state and local parks,
recreation areas and historical resources, and for land, air, and
water conservation programs?
PROVISIONS
This measure allows the state to sell $2.6 billion of general
obligation bonds to conserve natural resources (land, air, and water),
to acquire and improve state and local parks, and to preserve historical
and cultural resources.
Figure 1 (see below) summarizes the purposes for which the
bond money would be used. The bond money would be available for
expenditure by various state agencies and for grants to local public
agencies and nonprofit associations.
BACKGROUND
The state carries out various programs to conserve natural and
cultural resources, protect the environment, and provide recreational
opportunities for the public. The state also provides grants and
loans to local public agencies and nonprofit associations for similar
purposes.
Some of the funding for such programs has come from general obligation
bond funds. General obligation bonds are backed by the state, meaning
that the state is required to pay the principal and interest costs
on these bonds. General Fund revenues would be used to pay these
costs. These revenues come primarily from the state personal and
corporate income taxes and sales tax.
Since 1980, voters have approved about $7.6 billion of general
obligation bonds to provide funding for these state and local programs
as follows:
-
Bonds to Improve Water Quality and Supply.
About $3.8 billion in bonds have been approved for various
water-related purposes, including improving the safety of drinking
water, flood control, water quality, and the reliability of
the water supply.
-
Bonds for Natural Resource Conservation and Recreational
Opportunities. About $3.8 billion
in bonds have been approved to purchase, protect, and improve
recreational areas (such as parks and beaches), cultural areas
(such as historic buildings and museums), and natural areas
(such as wilderness and open-space areas, trails, wildlife habitat,
and the coast).
It is estimated that all but about $1.2 billion of the bonds
authorized by these previous bond acts will have been spent or committed
to specific projects as of June 2002.
In addition, the state also carries out programs that provide grants
to public agencies and private organizations for projects that reduce
air pollution. These programs have been funded from various funds,
including the General Fund.
Figure 1: California Clean Water, Clean Air, Safe Neighborhood
Parks, and Coastal Protection Act
Uses of Bond Funds
| (In Millions) |
| Amount |
| Land, Air, and Water Conservation |
$1275.0 |
|
State conservancies acquisition, development, and restoration
projects.
|
$445.0 |
|
Wildlife habitat acquisition and restoration projects.
|
300.0 |
|
Water quality protection and restoration activities, including
protection and restoration of watersheds, coastal waters,
beaches, rivers, and lakes.
|
300.0 |
|
Agricultural and grazing lands preservation.
|
75.0 |
|
Urban river parkways and streams development, restoration,
and protection projects.
|
75.0 |
|
Grants for reducing air emissions from diesel-fueled equipment
operating within state and local parks.
|
50.0 |
|
Land and water resource protection restoration through the
California Conservation Corps.
|
20.0 |
|
Urban forestry programs.
|
10.0 |
| Parks and Recreation |
$1057.5 |
|
Urban parks and recreational facilities acquisition and
development.
|
$460.0 |
|
Regional and local park acquisitions and development (funds
distributed based on population).
|
372.0 |
|
State park improvements and acquisitions.
|
225.0 |
| Historical and Cultural Resources Preservation |
$267.5 |
|
Acquisition, development, and preservation of culturally
and/or historically significant properties, structures, and
artifacts.
|
$267.5 |
| Total |
$2,600.0 |
FISCAL EFFECT
Bond Costs. For these bonds,
the state would make principal and interest payments from the state's
General Fund over a period of about 25 years. If the bonds were
sold at an interest rate of 5 percent (the current rate for
this type of bond), the cost would be about $4.3 billion to
pay off both the principal ($2.6 billion) and interest ($1.7 billion).
The average payment would be about $172 million per year.
Operational Costs. The state
and local governments that buy or improve property with these bond
funds will incur additional costs to operate or manage these properties.
These costs may be offset partly by revenues from those properties,
such as state park entrance fees. The net additional costs (statewide)
could be in the tens of millions of dollars annually.
IMPACT OF YES OR NO VOTE
A YES vote means the state could issue $2.6 billion in general obligation
bonds for development, restoration, and acquisition of state and
local parks, recreation areas and historical resources, and for
land, air, and water conservation programs.
A NO vote means the state would not be able to issue new general
obligation bonds for development, restoration, and acquisition of
state and local parks, recreation areas and historical resources,
and for land, air, and water conservation programs.
SUPPORTERS SAY
Our drinking water, our air, and our beaches will be protected from
toxic pollution.
- Coastal lands and beaches threatened by development need protection.
By protecting threatened coastal land, it will keep our beautiful
coast accessible to the public and free from inappropriate development.
- Passage of Proposition 40 will help provide kids with safe places
to play.
- It will safeguard California's rich heritage by providing programs
for conservation of wildlife, agricultural lands, and historical
and cultural resources.
- Our economy and environment will be enhanced and protected.
- Proposition 40 will not raise taxes.
- Proposition 40 will provide financial safeguards, including
annual audits, public hearings, and citizen reviews.
OPPONENTS SAY
- In March 2000, voters funded $4 billion in bonds for similar
projects. Why do we need another $2 billion that we cannot afford?
- Californians cannot afford more debt in the current economy.
- Proposition 40 does not provide clean drinking water for California's
growing population. No new reservoirs or treatment facilities
are included.
- Most of the funding will not be for neighborhood parks.
- Some money will go to special interests. We shouldn't all have
to pay for that.
- Local governments should finance their own projects.
- Bonds are an expensive and wasteful financing scheme, almost
doubling the cost. The total cost to taxpayers for the $2.6 billion
bond will be more than $4 billion.
SUPPORT AND OPPOSITION
Ballot arguments in support are signed by Dan Taylor, Executive
Director, Audubon California; Hank Locayo, President, Congress of
California Senators; Barbara Inatsugu, President, League of Women
Voters of California
Ballot arguments in opposition are signed by Senator Ray Haynes,
Vice-Chair, California State Senate Health Committee; Assemblyman
Dick Dickerson, Vice-Chair, California State Assembly Committee
on Water, Parks and Wildlife; Lewis Uhler, President, The National
Tax-Limitation Committee
For more information:
Supporters:
- Californians for Clean Water, Clean Air, Coastal Protection,
and Safe Neighborhood Parks, (916) 313-4539, www.voteyeson40.org
- National Audubon Society, (916) 481-5332, www.AudubonSFbay.org
- League of Women Voters of California, (916) 442-7215, www.ca.lwv.org
- California Organization of Police and Sheriffs, (310) 637-7166,
www.gsgi.org
- Clean Water Action, (415) 362-3040, www.cleanwateraction.org
- National Wildlife Federation, (202) 797-6800, www.nwf.org
- Concerned Citizens of South Central Los Angeles, (323) 846-2500,
www.ccscla.org
- League for Coastal Protection
Opponents:
For more information, see Smart
Voter Proposition 40.
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