BILL ANALYSIS
AB 1788
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1788 (Yamada)
As Amended July 15, 2010
Majority vote
-----------------------------------------------------------------
|ASSEMBLY: |77-0 |(June 1, 2010) |SENATE: |35-0 |(August 19, |
| | | | | |2010) |
-----------------------------------------------------------------
Original Committee Reference: W., P. & W.
SUMMARY : Changes the eligibility criteria under which a flood
control project in a disadvantaged community may receive
increased state funding and corrects the name of the former
Reclamation Board to the Central Valley Flood Protection Board.
The Senate amendments delete the eligibility criterion defining
a disadvantaged community as one that has a household poverty
rate 150% higher than the state average and, instead, use the
existing Water Code definition of a disadvantaged community as
the criterion.
EXISTING LAW
1)Requires specific percentages of nonfederal (i.e., state and
local) cost sharing for federal flood control projects and
allows the state to increase the state share of the nonfederal
capital costs of a flood control project from 50% to up to 70%
if the project would increase the level of flood protection in
an area with a median household income that is less than 120 %
of the federal poverty level, as defined by the Department of
Finance.
2)Defines a "disadvantaged community" as on with an annual
median household income that is less than 80% of the statewide
annual median household income.
AS PASSED BY THE ASSEMBLY , this bill changed the criterion which
would enable a disadvantaged community to be eligible for an
increased state share of the nonfederal capital costs of a flood
control project from requiring a median income that is less than
120 % of the federal poverty level to a California-based
standard of a household poverty 150 % higher than the state
AB 1788
Page 2
average.
FISCAL EFFECT : According to the Senate Appropriations
Committee, this bill 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, but potentially in the millions of dollars, and will
depend on future flood control project applications. For
example, in 2008, 120 % of the federal poverty level was about
$25,000. On the other hand, 80 % of the statewide median
household income was about $49,000. Therefore, under this bill,
more communities would be eligible for additional flood control
funding.
COMMENTS : This bill, as amended in the Senate, still addresses
the potential inequity of using a federal poverty standard as an
eligibility criterion in California, where costs of living are
higher, by shifting to a state-based standard. However, it
avoids creating potentially inconsistent definitions of
disadvantaged communities by referencing an existing standard in
the Water Code.
Analysis Prepared by : Tina Cannon Leahy / W., P. & W. / (916)
319-2096
FN: 0005961