BILL ANALYSIS
SENATE COMMITTEE ON EDUCATION
Jack Scott, Chair
2007-2008 Regular Session
BILL NO: SB 156
AUTHOR: Simitian
INTRODUCED: January 30, 2007
FISCAL COMM: Yes HEARING DATE: March 28, 2007
URGENCY: No CONSULTANT:Beth Graybill
SUBJECT : California Reading and Literacy Improvement and
Public Library
Construction and Renovation Bond Act of
2008
SUMMARY:
This bill enacts the California Reading and Literacy
Improvement and Public Library Construction and Renovation
Bond Act of 2008 to be submitted to the voters at the 2008
statewide primary election. If approved by the voters, the
Act would authorize the issuance of $4 billion in general
obligation bonds for public library construction and
renovation,
BACKGROUND
In 1988, the voters approved $75 million in state general
obligation bonds under the California Library Construction
and Renovation Bond Act of 1988 to establish a grant fund for
the acquisition, construction, remodeling, or rehabilitation
of public library facilities. These funds have been fully
expended.
In 2000, the voters approved $350 million in state general
obligation bonds under the California Reading and Literacy
Improvement and Public Library Construction and Renovation
Bond Act of 2000 (Proposition 14) for the purpose of
financing public library construction and renovation. All of
these funds have been allocated.
ANALYSIS
This bill :
1) Places a $4 billion general obligation bond measure on
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the February 5, 2008 ballot to finance a library
construction and renovation program.
2) Authorizes the California Public Library Construction
Board to adopt rules, regulations, and policies for the
bond program and review grant applications.
3) Requires recipients to provide matching funds in an
amount equal to 35 percent of the costs of the project
and limits state funding available to a maximum of $30
million per project.
4) Requires 5 percent of the total bond amount to be made
available for joint-use projects.
5) Establishes criteria and procedures for the allocation
of grant funds.
STAFF COMMENTS
1) Need for the bill : Proponents contend that current
library construction is not keeping pace with the
growth of quickly expanding communities. Some
libraries are too old to be wired for essential
technological advances such as computers and the
internet. In its last round of awards, the California
Public Library Construction and Renovation Board
reviewed proposals for 72 projects and funded 12 of
the 21 applications rated as "outstanding" in the
grant review. The 2999 Bond Act provided funding for
45 projects statewide. The chart below shows the
grants awarded and projects funded in each cycle.
--------------------------------------------
|Project Applications |Grant Awards |
--------------------------------------------
|----+-------+----------+-----+--------------|
|Cycl|# |State |Proje|State Funds |
|e |Projects |Funds |cts |Allocated |
| | |Requested | | |
| | | | | |
|----+-------+----------+-----+--------------|
|Cycl| 61|$530,430,8| 17| $145,395,447|
|e 1 | | 15| | |
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| | | | | |
|----+-------+----------+-----+--------------|
|Cycl| 66|$547,149,5| 16| $108,157,632|
|e 2 | | 19| | |
|----+-------+----------+-----+--------------|
|Cycl| 72|$586,692,4| 12| $80,588,293|
|e 3 | | 42| | |
|----+-------+----------+-----+--------------|
| | |Total | 45| $334,141,372|
| | |Funded: | | |
|----+-------+----------+-----+--------------|
| | |Sq Ft.: | | $1,503,471|
|----+-------+----------+-----+--------------|
| | |Avg. | |$7,425,364 |
| | |State | | |
| | |Grant: | | |
--------------------------------------------
A 2003 needs assessment, conducted by the California
State Library, indicated there were more than 575
public library projects that need to be built or
renovated, totaling over $4 billion. The State
Library expects to complete an update of this needs
assessment by April 2007.
2) Prior legislation : This bill is similar to SB 1161
(Alpert, Chapter 698, 2004) that proposed the
California Reading and Literacy Improvement and Public
Library Construction and Renovation Bond Act of 2006.
Proposition 81 failed on the June 2006 ballot, with
52.7% of voters voting against the initiative.
3) Funding priorities . Proposition 81 would have
required that priority be given to eligible projects
that were not funded in the third application cycle of
the 2000 bond program, effectively earmarking 50% of
the $600 million of the funds that would have been
available through the Act. While this bill requires
that at least 5% of total bond funds be reserved for
joint-use projects, it does not require that priority
be given to projects that were not funded in the 2000
bond program. Representatives of some unfunded
library projects argue that this bill forces them to
"lose their place in line" and start over in the
planning process. The Author's office notes that
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rising construction costs and new building codes
effectively make the old applications outdated and
that the new bond program should begin with a level
playing field.
4) Infrastructure Bonds . In November 2006, voters
approved $42.7 billion in general obligation bonds to
fund infrastructure projects in transportation,
education, resources, and housing. The LAO estimates
that when combined with existing bond authorizations,
the debt-service costs to the General Fund will rise
from $4.7 billion in 2007-08 to a peak of $7.5 billion
in 2014-15. SB 156 could increase these annual
debt-service costs.
SUPPORT
Board of Library Trustees, City of Burbank
California Library Association
California Special Districts Association
California State PTA
County of Santa Clara Board of Supervisors
Fresno County Board of Supervisors
Individual Letter
Pleasanton Library Commission
Santa Cruz Public Joint Powers Authority Board
OPPOSITION
California Taxpayers' Association
Howard Jarvis Taxpayers Association