Water Quality, Supply and Safe Drinking Water Projects. Coastal Wetlands Purchase and Protection. Bonds. Initiative Statute.

• Authorizes $3,440,000,000 general obligation bonds to fund a variety of water projects, including:
  • Specified CALFED Bay-Delta Program projects including urban and agricultural water use efficiency projects;
  • Grants and loans to reduce Colorado River water use;
  • Purchasing, protecting and restoring coastal wetlands near urban areas;
  • Competitive grants for water management and quality improvement projects;
  • Development of river parkways;
  • Improved security for state, local and regional water systems;
  • Grants for desalination and drinking water disinfection.
• Appropriates money from state General Fund to pay off bonds.

Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact:

• State cost of up to $6.9 billion over 30 years to pay off both the principal ($3.44 billion) and interest ($3.46 billion) costs on the bonds. Payments of about $230 million per year.
• Reduction in local property tax revenues, ranging from a few million dollars to roughly $10 million annually, about one-half of which would be offset by state payments to schools to make up their revenue loss.
• Unknown costs to state and local governments to operate or maintain properties or projects purchased or developed with these bond funds.