BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1788 (Yamada)
          
          Hearing Date:  08/12/2010           Amended: 07/15/2010
          Consultant:  Brendan McCarthy   Policy Vote: NR&W 9-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 1788 changes the income threshold for  
          additional flood control funding provided by the state to local  
          governments, such that more low income communities will qualify  
          for increased funding.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           
          Revising guidelines    Absorbable within existing resourcesBond  
          *

          Cost pressure on bond funds       Likely in the millionsBond *
          * Propositions 1E and 84.
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: Suspense File.

          Under current law, the state provides funding for local,  
          federally-authorized flood control projects. The state generally  
          provides 50 percent of the non-federal share of a project's  
          cost. However, if the project meets certain criteria, the state  
          may provide up to 70 percent of the non-federal cost share. For  
          example, a project is eligible for additional state funding if  
          the project protects or enhances wildlife habitat, protects or  
          enhances recreational opportunities, or if the project provides  
          flood protection for areas that have a median household income  
          that is less than 120 percent of the federal poverty level.  
          Recommendations for additional funding are made by the Central  
          Valley Flood Protection Board to the Department of Water  
          Resources.

          AB 1788 changes the standard for providing additional state  
          funding based on median incomes in a community. Under the bill,  
          the state may provide up to 70 percent of the non-federal cost  










          share for "disadvantaged communities" which is defined in the  
          Water Code as a community with annual median household income  
          less than 80 percent of the statewide median household income.

          In 2008, 120 percent of the federal poverty level was about  
          $25,000. On the other hand, 80 percent of the statewide median  
          household income was about $49,000. Therefore, under the bill,  
          more communities would be eligible for additional flood control  
          funding. This will put pressure on existing bond funds for  
          additional funding, reducing the amount of funding available for  
          other projects. The amount of this cost pressure is unknown and  
          will depend on future flood control project applications.