BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair SB 200 (Wolk) Hearing Date: 01/19/2012 Amended: 01/11/2012 Consultant: Brendan McCarthy Policy Vote: NR&W 9-0 _________________________________________________________________ ____ BILL SUMMARY: SB 200 extends the current maximum state contribution of 75 percent for levee maintenance projects in the Delta until an unspecified date. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2012-13 2013-14 2014-15 Fund Bond fund availability Cost pressures in the millions Bonds * * Proposition 84 and 1E. _________________________________________________________________ ____ STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED. The state provides subvention funding to local agencies for levee maintenance or improvement projects in the Sacramento-San Joaquin River Delta. Under current law, the Department of Water Resources may provide reimbursements for up to 75 percent of projects costs in excess of $1,000 per levee mile. On July 1, 2013 the maximum reimbursement rate will drop to 50 percent of a project's cost. After 2013, current law also caps General Fund contributions to this program at $2 million per year. In recent years, the state has funded this subvention program using general obligation bond funds (rather than the General Fund). Over the last decade, the state has provided between $5 million and $15 million per year in subvention funding in the Delta. SB 200 will extend the current 75 percent maximum state contribution until an unspecified date. Because the bill will increase the maximum state cost share for maintenance projects, it will put pressure on existing bond funds, which can be used for a variety of flood control > (>) Page 1 projects, including Delta subventions. The total cost pressures are unknown, because the number and size of future funding requests from local districts are unknown, and because the duration of the increased cost share is not specified in the bill. Staff notes that SB x7 1 (Simitian) requires the development of a Delta Plan, which is intended to provide comprehensive planning for the Delta, including infrastructure protection. The Delta Plan is due in January 2012, but has not yet been adopted. A draft Delta Plan indicates that the Department of Water Resources is developing a document to create a framework for investments in Delta flood management. That document is estimated to be completed by January 1, 2013. The proposed amendments would set a sunset date of July 1, 2014.