BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 200 (Wolk)
          
          Hearing Date: 01/19/2012        Amended: 01/11/2012
          Consultant: Brendan McCarthy    Policy Vote: NR&W 9-0
          _________________________________________________________________
          ____
          BILL SUMMARY: SB 200 extends the current maximum state 
          contribution of 75 percent for levee maintenance projects in the 
          Delta until an unspecified date.
          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2012-13      2013-14       2014-15     Fund
           
          Bond fund availability Cost pressures in the millions   Bonds *
          * Proposition 84 and 1E.
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          ____

          STAFF COMMENTS: SUSPENSE FILE. 

          The state provides subvention funding to local agencies for 
          levee maintenance or improvement projects in the Sacramento-San 
          Joaquin River Delta. Under current law, the Department of Water 
          Resources may provide reimbursements for up to 75 percent of 
          projects costs in excess of $1,000 per levee mile. On July 1, 
          2013 the maximum reimbursement rate will drop to 50 percent of a 
          project's cost. After 2013, current law also caps General Fund 
          contributions to this program at $2 million per year.

          In recent years, the state has funded this subvention program 
          using general obligation bond funds (rather than the General 
          Fund). Over the last decade, the state has provided between $5 
          million and $15 million per year in subvention funding in the 
          Delta.

          SB 200 will extend the current 75 percent maximum state 
          contribution until an unspecified date.

          Because the bill will increase the maximum state cost share for 
          maintenance projects, it will put pressure on existing bond 
          funds, which can be used for a variety of flood control 








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          projects, including Delta subventions. The total cost pressures 
          are unknown, because the number and size of future funding 
          requests from local districts are unknown, and because the 
          duration of the increased cost share is not specified in the 
          bill.

          Staff notes that SB x7 1 (Simitian) requires the development of 
          a Delta Plan, which is intended to provide comprehensive 
          planning for the Delta, including ecosystem restoration, water 
          supply reliability, and infrastructure protection. The Delta 
          Plan is due in January 2012, but has not yet been adopted. A 
          draft Delta Plan indicates that the Department of Water 
          Resources is developing a document to create a framework for 
          investments in Delta flood management. That document is 
          estimated to be completed by January 1, 2013.