BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 200
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     SB 200 (Wolk) - As Amended:  June 25, 2012 

          Policy Committee:                             Water, Parks and 
          Wildlife     Vote:                            13-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill extends, from July 1, 2013, to July 1, 2018, the 
          sunset on the formula, established by a statement of legislative 
          intent, by which the state reimburses up to 75% of local costs 
          for the maintenance and improvement of levees.  

           FISCAL EFFECT  

          Cost pressure, potentially in the millions dollars annually, to 
          fund local projects to maintain and improve levees (GF and bond 
          funds).

           COMMENTS  

           1)Rationale.   The author contends expiration of the 75% 
            cost-share limit will leave local agencies, many of whom are 
            financially strapped, unable to undertake costly projects to 
            maintain Delta levees, thereby risking drinking water supplies 
            and critical environmental and economic infrastructure. 

           2)Background.   Levees protect critical resources of statewide 
            interest, including drinking water supplies and 
            infrastructure.  For this reason, the federal and state 
            governments fund local efforts to maintain and improve levees. 
             

            Consistent with legislative intent expressed in current law, 
            the Department of Water Resources (DWR) may reimburse up to 
            75% of local costs in excess of $1,000 per mile to maintain or 
            improve levees, based on the local agency's ability to pay the 
            costs of the project.  Existing statute will reduce the state 








                                                                  SB 200
                                                                  Page  2

            share to 50% and limit annual General Fund expenditures to $2 
            million, effective July 1, 2013.  Legislation has several 
            times extended the sunset on the 75% limit on the state's 
            share of local levee maintenance and protection project costs.

            DWR reports it often funds more than 50% of a local levee 
            project's costs and rarely funds 75% of those costs (bond 
            funds), and that overall annual state funding for such 
            projects has varied from $5 million to $15 million.       

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081