BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          SB 1189 (Hancock) - High-speed rail bond: appropriation of 
          connectivity funds
          
          Amended: March 26, 2012         Policy Vote: T&H 6-3
          Urgency: No                     Mandate: No
          Hearing Date: April 30, 2012                           
          Consultant: Mark McKenzie       
          
          This bill meets the criteria for referral to the Suspense File. 

          
          Bill Summary: SB 1189 would appropriate $523.4 million from the 
          High-Speed Passenger Train Bond Fund to the Department of 
          Transportation for allocation by the California Transportation 
          Commission (CTC) for local and regional projects that will 
          provide connectivity to the high-speed rail system.

          Fiscal Impact: Appropriation of $523.4 million in bond funds 
          (High-Speed Passenger Train Bond Fund) in 2012-13.

          Background: Proposition 1A of 2008, the Safe, Reliable 
          High-Speed Passenger Train Bond Act of the 21st Century, 
          authorizes the sale of $9.95 billion in general obligation 
          bonds, including $950 million for improvements to intercity, 
          commuter, and urban rail systems that would connect to 
          high-speed rail.  Prop 1A includes formulas for allocating these 
          connectivity funds but directs the CTC to develop a program of 
          specific projects, which was completed in 2010.  The Legislature 
          appropriated funds to support this program in the 2010 and 2011 
          Budget Acts, but both Governor Schwarzenegger and Governor Brown 
          vetoed all connectivity appropriations except those directed to 
          positive-train control investments.  The most recent veto 
          message cites the need for a CTC plan of projects that is more 
          integrated with the high-speed rail system.

          Proposed Law: SB 1189 would appropriate $523.4 million in 
          Proposition 1A general obligation bond funds for allocation by 
          the CTC for local and regional connectivity projects consistent 
          with specified guidelines adopted by CTC on February 24, 2010.

          Staff Comments: In conjunction with the release of the revised 
          business plan by the High-Speed Rail Authority (HSRA) in April 








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          2012, the Governor's proposed 2012-13 budget plan requests an 
          appropriation of $812 million in Proposition 1A bond funds for 
          connectivity projects, but only after the CTC has adopted a new 
          program of projects, in coordination with the HSRA.  The 
          proposed budget appropriation also is contingent upon approval 
          of funds for the Initial Operating Segment of the high-speed 
          rail system in the Central Valley.  The CTC indicates they will 
          initiate a new selection process consistent with the Governor's 
          proposal, and that a new program of projects, selected in 
          coordination with the HRSA, could be approved as early as June 
          of this year.

          AB 1189 would provide funding for the previous plan of projects 
          adopted by the CTC, which are generally considered to be ready 
          for construction once funds are appropriated.