[BATN] Schwarzenegger bond scheme completely omits housing, transit Date: 07 Jan 2006 11:04:07 -0800 X-Fingerprint: sentto-2486642-28198-1136690719-news=energy-net.org@returns.groups.yahoo.com-127.127 Published Saturday, January 7, 2006, in the San Francisco Chronicle Governor's plan omits housing and transit Critics say crucial needs unmet under ambitious bond proposal By Greg Lucas For all its size and sweep, critics say Gov. Arnold Schwarzenegger's ambitious 10-year public works construction plan leaves out or glosses over several key needs in California, specifically affordable housing and a bigger investment in mass transit. Schwarzenegger devoted the vast majority of his speech to a $222 billion spending plan that would use existing revenue and $68 billion in new bonds to finance a panoply of modernization, rehabilitation and construction projects for California's universities, public schools, highways, levees, jails and courts. But some environmentalists, transit agencies and affordable housing advocates questioned a number of the governor's spending priorities and omissions. The governor has said his proposal is a starting point for negotiations with lawmakers. Democratic leaders of both the state Senate and the Assembly each have their own public works plans, which embrace some different spending choices than Schwarzenegger's -- in particular creation of affordable housing. California is home to the top 20 least affordable housing markets in the country, according to a study sponsored by the state's Building Industry Association. Yet Schwarzenegger's massive public works financing proposal contains no money to help generate more affordable housing. "It's extremely disappointing to hear the governor lay out a 10-year strategy of this magnitude and leave one of the central areas of infrastructure off the list entirely," said Christine Minnehan, a lobbyist for the Western Center on Law and Poverty who also led the campaign for Proposition 46, a $2.1 billion homelessness and housing bond approved by voters in 2002. Funds from the bond are nearly exhausted. "The state is the only entity that has provided housing for the lowest-income people," Minnehan said. Mike Genest, director of Schwarzenegger's Department of Finance, said the administration weighed including housing but capital improvements to education and transportation were the highest spending priorities. A cap the Republican governor wants to impose on debt payments prevented housing from making the cut, Genest said. H. D. Palmer, a spokesman for the Department of Finance, stressed that the fact that housing bonds were not included in the governor's proposal does not mean other parts of the administration aren't working to make homes more affordable. Nearly half of the governor's proposed spending -- $107 billion -- is consumed by transportation projects. Of that, $88 billion is targeted for highway and road improvements. Rail transit would receive $4.5 billion over the 10-year life of the proposal. The first transportation bond the governor proposes for the June ballot spends half of its $6 billion on highway projects, $2 billion on port improvements and $400 million for intercity rail expansion. "It completely ignores funding for transit, in my opinion," said Tony Rice a lobbyist for the California Transit Association. "Why build freeways so someone can live 75 miles from work. Why not make it easier to live near where you work?" Rice cited a study commissioned by the state Senate three years ago that found a $100 million unfunded need for transportation projects, of which one-third was transit. The governor also wants to remove from the November ballot a $9.95 billion bond to provide seed money for a high-speed rail system linking Northern and Southern California. The Schwarzenegger administration said the bond proposal maintains the same level of funding that transit receives now. Several environmentalists also questioned how the governor's transportation proposal, weighted as it is toward highway projects, helps reach his reduction targets announced in December for emissions that deplete the ozone layer. "The governor made a critical campaign pledge to cut the state's air pollution in half, and he's committed to an aggressive plan to tackle global warming. How does this new proposal get us on a path to achieving those goals?" said Ann Notthoff, legislative director of the Natural Resources Defense Council in California. The GOP governor also did not mention in his plan any strategies to discourage additional sprawl, another troubling omission for environmentalists. "The state shouldn't throw big money at infrastructure projects without efficient land-use policies," said Bill Allayaud, a lobbyist for the Sierra Club in Sacramento. Doctors and other health care providers and advocates were perplexed by Schwarzenegger's failure to mention California's burdened emergency rooms and high number of uninsured citizens. "I was surprised. Health is an area of growing concern for the public," said Dr. Jack Lewin, chief executive officer of the California Medical Association. "In a state with 7 million uninsured people and 3 million noncitizens who lack health coverage, the problem of the uninsured and under-insured is a significant challenge, and we must face it," Lewin said. Margita Thompson, Schwarzenegger's press secretary, said the administration would be discussing health care next week when the governor unveils his proposed budget for the fiscal year beginning July 1. E-mail Greg Lucas at glucas@sfchronicle.com Email article texts/URLs for posting to . Manage your subscription by sending a blank email message to: BATN-subscribe@yahoogroups.com to subscribe, BATN-unsubscribe@yahoogroups.com to unsubscribe, BATN-digest@yahoogroups.com to switch email to digest mode, BATN-normal@yahoogroups.com to switch email to normal mode, BATN-nomail@yahoogroups.com to switch email delivery off. See http://groups.yahoo.com/group/BATN for web access & archives.