California lawmakers have announced plans to implement bond measures that would add $20 billion to the state’s debt but help fund responses to climate-related disasters, ensure clean water and modernize school buildings.
The two climate and education bond measures would borrow $10 billion each and could go before voters on the November ballot if they are approved by the Legislature this week and then signed by Gov. Gavin Newsom.
“These bond measures are critical to the future of this state,” California Senate President Pro Tem Mike McGuire (D-Healdsburg) said in a statement.
Top Democratic lawmakers announced a deal on bond measures Sunday after months of closed-door negotiations at the state Capitol over what issues should be addressed through long-term funding and how much to borrow. The deal represents lower requests — the original proposals topped $14 billion and $15 billion each — and rules out a plan to pursue a bond measure to finance affordable housing.
The bond deals come after Newsom signed a budget plan Saturday that closed an estimated $46.8 billion deficit through spending cuts and temporary tax increases on some businesses. The bond measures, if approved by voters, would allow lawmakers to borrow money not allocated by the budget.
Environmental groups, including the California Biodiversity Institute, supported the climate-related bond, which aims to help communities “avoid and recover” from disasters such as flooding and extreme heat. If approved, it will be the largest climate investment in state history.
“Every part of our state is affected, and unless we take action now, the cost of addressing these impacts will become increasingly overwhelming,” said State Sen. Ben Allen (D-Santa Monica), chairman of the Senate Environmental Quality Committee.
A long list of school districts support the education funding bond measure, which would modernize schools that need new heating and cooling systems, libraries and broadband Internet. But Public Advocates, a civil rights organization, threatened to sue the measure for what it called an “unequal distribution formula” that could discriminate against low-income school districts.
“This bond will continue to deliver more state bond funds to wealthier districts with higher assessed property values and more ability to raise local bonds,” Public Advocates said in a statement Sunday.
If the Legislature approves climate and education measures this week, voters may not do so in November. Voters in this year's primary election barely approved Proposition 1, a $6.4 billion bond measure to transform California's mental health system.
According to a recent survey by the Public Policy Institute of California, 64% of voters surveyed said it is a “bad time” to issue state bonds. California has about $79 billion in outstanding bond debt, according to the nonpartisan Legislative Analyst's Office.
The Associated Press contributed to this report.
