Tuesday’s top of the scroll: Californians to be asked to spend more during unprecedented spree of water spending, as State’s debt burden climbs higher

From the Contra Costa Times:

“Supporters of a proposed $11 billion water bond say the money is urgently needed to fix California’s water supply problems, yet billions of dollars in previous bond money still hasn’t been spent, according to the California treasurer.

About half of the $20 billion in water and levee improvement bonds passed since 2000 was unspent as of July, according to the State Treasurer’s Office most recent report on debt affordability. It is unclear how much of that money is actually available for new efforts, since lawmakers have appropriated billions for specific projects, according to Jason Dickerson, debt service analyst for the Legislative Analyst’s Office.

Some of those commitments could be changed by lawmakers if they want to redirect funds or by voters if they revise earlier bond measures.

But projects also could already be under way with the expectation that they would be paid later when bonds are sold to investors, Dickerson said.

Despite that spending, bond supporters say more is needed and they will spend the next year making the case for the biggest water bond ever proposed.

“It really is a need for investment in the tens of billions of dollars in the next few decades,” said Mark Cowin, deputy director of the Department of Water Resources. … “

Read more from the Contra Costa Times by clicking here.

But can we afford it? The LAO warning casts doubt reports the Sacramento Bee:

“Before the economy went bust, California voters authorized multibillion-dollar charges on the state’s infrastructure credit card.

They approved generational investments in roads, schools and levees, as well as hospitals and stem-cell research. At the time, fiscal experts projected that California at most would have to spend roughly 6 percent of its annual budget on payments.

But after an economic collapse, estimates now show that debt service could consume as much as 10 percent of the annual general fund budget by 2014-15 – an “unprecedented” ratio, according to the Legislative Analyst’s Office.

The latest debt warning comes weeks after lawmakers and Schwarzenegger placed a new $11.1 billion water bond on next November’s ballot. Backers of the measure say the state desperately needs a water system overhaul. … “

Read more from the Sacramento Bee by clicking here.

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