BILL ANALYSIS                                                                                                                                                                                                    

                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 907 (Evans)
          Hearing Date: 05/26/2011        Amended: 05/03/2011
          Consultant: Mark McKenzie       Policy Vote: G&F 6-2
          BILL SUMMARY: SB 907 would establish the Master Plan for 
          Infrastructure Financing and Development Commission, if funds 
          are appropriated for this purpose, to develop and recommend a 
          plan to the Governor and Legislature by December 31, 2013 that 
          provides for financing, building, and maintaining the 
          infrastructure necessary to meet California's social, economic, 
          and resource needs through 2050.  This bill would:
                 Specify the 11 members of the commission, including the 
               treasurer, six members appointed by the governor, two 
               members appointed by the Speaker of the Assembly; and two 
               members appointed by the Senate Committee on Rules.
                 Require the appointment of a full-time chair of the 
               commission and authorize a salary for the chair of up to 
               $150,000 annually.
                 Require the appointment of an executive director, with a 
               salary of up to $150,000 annually, and authorize the 
               loaning of staff with relevant experience from other state 
               agencies, local government, and private nonprofit 
                 Specify numerous administrative and governance 
               requirements of the commission, including the establishment 
               of task forces on planning and finance, transportation, 
               housing, natural resources, and education to provide 
               analysis and recommendations to the commission.
                 Require the commission to develop long-term guidelines 
               for state infrastructure needs and a prioritized plan that 
               meets those needs.  Key components would include 
               projections of population and economic trends, assessments 
               of capital needs for various areas, and development of a 
               recommended financing plan.
                 Require the commission to submit its final report to the 
               Governor and Legislature by December 1, 2013, and to 
               dissolve 30 days thereafter.
                 Make the bill's requirements contingent upon a Budget 
               Act appropriation from the California Debt and Investment 
               Advisory Commission (CDIAC) Fund.


          SB 907 (Evans)
          Page 1

                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           New Commission                    $650        $350      Special*
          * California Debt and Investment Advisory Commission Fund 
          (specified in the bill).


          Existing law requires the governor to annually submit a 
          five-year infrastructure plan to the Legislature.  The plan must 
          contain Identification of infrastructure requested by agencies; 
          aggregate funding for transportation; infrastructure needs for 
          K-12 education; instructional facility needs for UC, CSU, and 
          the Community Colleges; and the cost of providing the 
          infrastructure, sources of funding, and impact on the state's 
          debt position.  The last five-year infrastructure report was 
          issued in 2008, and the current Administration indicates that it 
          will issue an updated report in 2012.  Governor Schwarzenegger 
          issued the California Strategic Growth Plan in 2007 and 2008, 
          which outlined the state's infrastructure needs over the next 
          two decades.  Existing law also requires the Governor's Office 
          of Planning and Research to prepare a State Environmental Goals 
          and Policy Report every four years, which looks at state growth 
          and development over the next 20 to 30 years and includes 
          approved environmental goals and policies.  The last 
          Environmental Goals and Policy Report that a Governor approved, 
          however, was An Urban Strategy for California (1978).

          SB 907 is intended to provide a more dynamic mechanism for 
          studying the state's infrastructure needs with a broader view 
          and for a longer planning window than existing efforts.  The 
          bill requires the plan to include a process for periodical 
          adjustments of the type, distribution, and priority of 
          infrastructure projects to meet changing circumstances.  

          In addition to the full-time chair and executive positions 
          identified in the bill, the commission would likely need 
          additional full-time staff, which may include contracts for 
          outside experts, as specified.  The bill also authorizes staff 


          SB 907 (Evans)
          Page 2

          to be loaned from other relevant state agencies.  The borrowing 
          of staff whose core function may be dedicated to other state 
          services may be infeasible, resulting in loss of productivity in 
          departments that are currently undergoing staff reductions.  To 
          the extent staff are redirected from other state departments to 
          the commission, those affected departments would experience 
          staff cost pressures.  Staff estimates that total costs for 
          dedicated staff, contracts for consultants, and ongoing 
          operations would be in the range of $1 million over the life of 
          the commission.  Costs could be higher to the extent that the 
          commission is unable to borrow staff from other agencies.  Since 
          the bill requires an appropriation from the CDIAC fund prior to 
          implementing any of the bill's requirements, these costs would 
          likely not be incurred until a budget is approved for the 
          2012-13 fiscal year.

          Staff notes that this bill is substantially similar to AB 2579 
          (Evans), which was held under submission in the Assembly 
          Appropriations Committee last year.