Good analysis of the recent bond passage and what needs to happen that hasn’t, as well as a somber reminder (highlighted) of what often happens with new money governments get for ongoing projects; they reduce the general fund expenditures for that project (one reason we don’t support raising adjacent property taxes for Parkway maintenance).
Richard G. Little: State lacks vision for infrastructure
By Richard G. Little - Special To The Bee
Published 12:00 am PST Sunday, November 18, 2007
One year after California voters approved the largest bond package in state history to fund infrastructure, most will have the impression that the problem is well under control. However, that's not the case.
A panel of experts convened by the Keston Institute for Public Finance and Infrastructure Policy this month highlighted some sobering realities regarding the infrastructure bonds.
Despite $42 billion approved by the voters, only 5 percent of those funds have been released to agencies to spend. Some delay can be attributed to agencies gearing up to spend new money, some to the three-month delay in approving a state budget, but most to lack of any statewide vision for infrastructure…
But as long as bonds [or new taxes] are available to fund infrastructure, they quickly can become the de facto sole source. Revenues allocated to transportation or flood control can be shifted to other programs to cover shortfalls and the loss backfilled with bond [or tax] monies.
