BILL ANALYSIS
SB 808
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Date of Hearing: May 19, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 808 (Wolk) - As Amended: January 25, 2010
Policy Committee: Water, Parks and
Wildlife Vote: 11-0
Urgency: Yes State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill extends the inoperative date of the Delta levee
maintenance subvention program, from July 1, 2010 to July 1,
2013, and makes program reimbursements consistent with the Delta
Plan.
FISCAL EFFECT
Cost pressures of an unknown amount, potentially in the hundreds
of thousands of dollars annually, to fund local levee
maintenance projects. This is because the bill maintains the
current cost-share ratio for local levee maintenance-75% state
funds to 25% local funds. Absent this bill, the program
converts to a lower 50-50 cost-share ratio for local levee
maintenance. (Most likely bond funds, though subvention
payments could come from the GF.)
The Department of Water (DWR) Resources reports that, last year,
local agencies did not claim all available state funds (bond
funds) for levee maintenance projects because they could not
meet the 25% match. DWR concludes that, should the program
convert to a 50-50 cost-share ratio, locals would be even less
able undertake levee maintenance projects. As a result, DWR
surmises, the state will spend money to address emerging or
acute levee failures, spending which might exceed what the state
would have spent subvening local levee maintenance.
COMMENTS
1)Rationale . The author contends the Delta levee system serves
both local and state interests, including water conveyance.
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The author argues the Delta levee maintenance subvention
program's 75-25 cost-sharing formula has helped local
reclamation districts to maintain and improve their levees,
thereby protecting the system. If the formula returns to a
50-50 split, the author fears, many small districts with
limited economic resources would not be able to afford to
maintain the Delta levees adequately.
2)Background .
a) Delta Levee Maintenance Subvention Program. The system
of public and private levees protects Delta land, life and
livelihood. In addition to these local benefits, the
levees allow water conveyance as part of the State Water
Project and the federal Central Valley Project, both of
which provide water for drinking and agriculture in much of
the state.
The Delta levee maintenance subvention program was created
1973. The program recognizes the combined local and
statewide benefits provided by the levees. For this
reason, the program reimburses local agencies for the costs
to maintain or improve the levees. Until June 30, 2010,
the reimbursement rate is:
i) Zero if the entire cost incurred per mile of levee
is $1,000 or less.
ii) Up to 75% of any costs incurred in excess of
$1,000 per mile of levee, based upon an assessment of the
agency's ability to pay.
Absent this bill, the reimbursement rate will convert as
follows, effective July 1, 2010:
i) Zero if the entire cost incurred per mile of
levee is $1,000 or less (no change).
ii) 50% of any costs incurred in excess of $1,000
per mile of levee.
In recent years, the state has made available to the
subvention program between $18 and $26 million in bond
funds. In each of these years, locals failed to avail
themselves of millions of these state subvention dollars,
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presumably because they could not raise the money to meet
their 25% cost share.
Current law caps General Fund contributions to this program
at $2 million per year, a cap which remains unchanged by
this bill. The GF has not been used for this purpose in
recent years.
b) Delta Plan . Last year, the Legislature passed SB7X 1,
Simitian (Chapter 5, Statutes of 2009) to create the Delta
Stewardship Council. The legislation requires the council
to develop a Delta Plan, which is to include priorities for
levee investments within the Delta. The Delta Plan is to
be completed by January 1, 2012, and submitted to the
Legislature for review. This bill extends the Delta levee
maintenance subvention program only until January 2013,
which should prevent the program from interfering or
conflicting with Delta priorities identified in the Delta
Plan.
3)Supporters include the Association of California Water
Agencies (ACWA) and several other agencies and entities
interested in levee maintenance and improvements.
4)There is no registered opposition to this bill.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081