BILL ANALYSIS Ó
AB 2444
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Date of Hearing: May 18, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2444 (Eduardo Garcia) - As Amended April 26, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill places the California Parks, Water, Climate, and
Coastal Protection and Outdoor Access For All Act on the
November 8, 2016 ballot, which, if approved by the voters, would
authorize issuance of $2.985 billion in General Obligation
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(G.O.) bonds to finance parks, water, climate adaptation,
coastal protection, and outdoor access programs. Specifically,
this bill:
1)Provides $995 million to the Department of Parks and
Recreation (DPR) for safe neighborhood parks in accordance
with the Statewide Park Development and Community
Revitalization Act, as specified.
2)Provides $995 million for local parks distributed on a per
capita basis, the restoration of existing state park
facilities, trails and waterfront greenways, and rural
recreation, tourism and economic enhancement, as specified.
3)Provides $995 million for clean water, coastal and watershed
co-benefits, state Conservancies, and climate preparedness and
habitat resiliency, as specified.
4)Limits the administrative costs of grants to 5%.
5)Authorizes up to 10% of funds allocated for each program to be
used for planning and monitoring. Allows planning funds to
exceed 10% for projects that benefit disadvantaged
communities.
6)Provides 10% or more, as specified, of available funds for
technical assistance to disadvantaged communities.
FISCAL EFFECT:
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1)Annual GF principal and interest payments of approximately
$194 million.
The state pays principal and interest during the repayment
period. Cost will depend on factors such as the actual
interest rate paid, the timing of the bond sales (bonds are
often sold over a number of years), and the time period over
which the bonds are repaid.
Assuming a 5% flat interest rate with a 30-year repayment
period, the state would pay about $65 million annually in
principal and interest costs for each $1 billion borrowed.
2)One-time General Fund costs of around $220,000 to include the
text and analysis of the constitutional and arguments for and
against the measure in the statewide voter information guide.
COMMENTS:
1)Purpose. According to the author, to maintain a high quality
of life for California's growing population requires the
continuing investment in parks, recreation facilities, and the
protection of the state's natural and historical resources.
This bill places a park bond on the November 2016 statewide
ballot, to fund parks, outdoor open spaces, waterways,
wildlife corridors, climate change adaptation, and other
natural resource projects. A major priority focus of this bill
is addressing the needs of park-poor and disadvantaged
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communities.
2)Background. Resources G.O. bonds have been the primary source
of state funding for the acquisition and improvement of parks,
open space, and wildlife, as well as for water conservation,
water recycling, flood management, and water supply needs.
Past bond acts have funded a variety of state, regional, and
local parks, recreation, conservation, and water-related
projects. Bond acts have included funding for support of
California's 280 unit state park system, for local and
regional parks, for projects to provide public access to the
coast and other public lands, and to fund wildlife habitat
conservation needs. Bonds have also provided funding for
state conservancies and for river restoration projects. Since
2000, the voters have approved $22.59 billion in water, parks
and related resource bonds.
3)Ongoing discussions. This bill contains numerous categories
with unspecified funding amounts. The author continues to
work with stakeholders and others to determine appropriate
funding levels.
4)Prior Legislation. SB 317 (De León) of 2015 proposed to
authorize $2.45 billion in bond expenditures, including $1.45
billion for parks. This bill failed passage on the Senate
floor.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
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319-2081