Investing in CA

7/31/2019 Investing in CA

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Investingin California:Our State,

Our Future.

Planning fortransportation,public facilities &natural resources.


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What is ifrastrtre?

There are our major types o inrastructure used by Caliornias 37 million residents:

Transportation roads, bridges, transit, airports, shipping ports, rail

Education Facilities buildings or K-12 schools, colleges and universities

Water & Natural Resources water, air quality, electricity, parks and beaches

Public Buildings re and police stations, libraries, public hospitals,government buildings, courts, prisons, public housing

Many investments ocus on government-owned inrastructure and need voter approval.

This is because inrastructure investments are usually one-time capital expenses, like

passing a local bond to build or upgrade a school. These unds are in addition to regular

state, county or city budgets, which cover operating and maintenance expenses, such as pay-

ing or teachers, sta and utilities to run the school. The Caliornia public plays a large

role in deciding how much is spent on dierent kinds o inrastructure.

Next Ten is an independent nonpartisan organization that

educates, engages and empowers Caliornians so that, together,

we can improve our uture economy and quality o lie.

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Every minute of every day, people in our state are drinking water andtraveling on roads. Millions are getting to work on public

transportation and sending children to public schools. These are exam-

ples of infrastructure the foundation for our vast and

bustling state.

When its serving us well, we may not even notice this foundation that

supports how we live and work. But when it falls short, were all in-

volved. There are many proposals now about infrastructure that require

public choices. The decisions we make together will affect Californias

economy and quality of life for years to come.

The oundationo the Caliornia dream.


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Currently, the average Caliornian contributes about $950 per year or state and local

inrastructure through taxes and ees (how much you pay depends on where you live

and your amily income). We invest in inrastructure or three main reasons:

Repair and maintenance like xing potholes and repairing levees

To keep up with population growth estimated at more than 500,000 per year

Better technology and higher standards such as new technology andtelecommunications in classrooms and communities, improved standards or water

and air quality and earthquake retrots

Spedig ifrastrtre

Some people refer to the1960s as the golden yearswhen California made big

investments in its watersystem, highways andschools. In the 1970s and

1980s, spending per personwas much lower. Recently,spending on infrastructure

has been rising, but notenough yet to make up for

past underinvestment .

Some people point to long commutes, overcrowded schools and prisons, beach closures

or poor air quality as examples that we need to make up or past years o lower spending.

Others disagree and eel that increased spending may be wasted by the government.

What future would you like for California?

How do you feel about the roads, schools and infrastructure in your community?

-50%

50%

0%

150%

1957 1967 1977 1987 1997 2002

100%

%i

ncreasesince1957

State and Local Infrastructure Spending Per Person

GoldenYears

Lower Spending


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Payig fr ifrastrtre

State and local governments ask voters to approve bonds to borrow money or

things that will last a long time, like schools and bridges. These investments are

intended to improve our economy or quality o lie. The government sells the

bonds to get money now and pays them back with interest, over a number o years. State bonds are paid back rom the states General Fund. To pay back $10 billion

in bonds over 30 years, or example, currently costs about $650 million per year

totaling $20 billion ater all payments are made. Bonds reduce what the state can

spend on other budget items like education and health care.

Local bonds are paid back with taxes on local property. Homeowners are told how

much extra the bond will cost. Renters may also pay through rent increases.

For each bond, we can ask: Is this a good investment? Is it something that will last and

provide value or this and the next generation? Are there other ways to pay instead?

Abt bds

Funds to invest in Caliornias inrastructure come rom many dierent sources:

state and local taxes, bonds, user ees, the ederal government and companies

like utilities. For any inrastructure investment, we need to decide:

How much do we need? How do we meet the needs o our communities and also

make sure that we are using resources as wisely and eciently as possible?

Who pays? Do we want the general public to pay or it (like schools) or is it

something that only users should pay or based on how much they use (like waterbills or gas taxes)?

Do we pay now or later? A government can choose to spend on inrastructure just

what it raises in a given year. Or, like a amily getting a home loan, governments can

borrow by selling bonds and then pay them back with interest over time.

Today, 37 million people in Caliornia use thesame amount o water as when the state hadonly 27 million people. These dramatic gainsin water eciency have come rom changes inagriculture like more drip irrigation, new ways omanuacturing and more households using low-fush toilets and low-fow shower heads.

Grwig

Smarter


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Most Caliornians say that improving transportation is a priority. Consider these options:

Caliornians can choose to use more public transit (only about 5% commute to work

that way) or use more carpools.

Bonds and/or taxes or transportation projects will be on your next ballot. State government could raise taxes or ees dedicated to transportation.

We can provide incentives or new ways o designing communities with better

access to jobs and services so that people drive less.

How many new roads should we build to support current and uture drivers? It now

costs three times as much to build a mile o highway than 30 years ago, even ater

adjusting or infation, because the price o land and building materials has grown

aster than other costs. What other types o transportation besides roads should get

investment priority to help our economy keep growing?

Trasprtati

Caliornia has 50,000 miles o highway lanes, serving 23 million drivers. The

state has several major ports and over 250 public airports. Together, these help

support a $1.5 trillion state economy. Yet many Caliornia cities also suer

severe trafc congestion, poor air quality, and crowded ports and airports.

Caliornia spent $22.4 billion in transportation investments in 2005-06:

Transportation Spending

$22.4 billion (2005-06)

CountySalesTax14%

FederalFunds15%

Tolls, Fares,Property

Taxes22%

Vehicle Fees22%

State Gas andSales Tax

27%

Local TransitBuild/Operate

28%

Local Roads

Build/Repair21%

CHP &DMV

9%

State RoadsBuild/Repair

42%

Most transportation funds arespent on highways and roads.

Much of the transportationincome is from drivers.

Transportation Income

$22.4 billion (2005-06)

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Caliornia has many natural resources. As we manage and maintain our water,

orests, beaches, parks and energy sources, we can think about opportunities toimprove the environment while also keeping pace with population.

Caliornians can visit over 1,000 parks and over 1,340 miles o coastline. State bonds

are usually used or state parks, land conservation and beach cleanup. Local parks and

recreation acilities are unded by various sources including local bonds. Regulatory

ees paid by businesses are a major source o unding or environmental protection.

Every day Caliornia uses 40 billion gallons o water. The average amily spends $350

a year on local water projects through their water bills or in their rent. Big state food

control projects like the levee system are unded by state bonds and ederal money.

Edati Failities

Caliornia has 9,000 publicly unded K-12 schools serving over 6 million

students. For students in higher education, there are 110 community colleges and

33 university campuses. New acilities and upgrades are mostly unded by:

Local school bonds the average amily pays about $200 per year toward local

school bonds in their property taxes or rent.

State school bonds the average amily pays about $250 per year or stateschool bonds through state income and sales taxes.

Local school and community college bonds can now pass with 55% voter approval

instead o a two-thirds vote in the past. Since the change, over 80% o local school

bonds have passed and there is a lot o new school construction.

More than 75% o Caliornias K-12 public schools are over 25 years old. As we upgrade

and expand schools, we can look or ways to share acilities.

Los Angeles Unied School District andhealth providers worked together to placea health clinic at Sun Valley Middle School.Instead o one school nurse or 3,000students, all amilies in the community nowhave a ull clinic. The clinic saved on realestate costs and receives ederal unds thatthe county otherwise wouldnt have gotten.

SharigcmmityResres

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FocuS on Water ad natral Resres


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Getting inormed about the issues and talking with others is a great frst step or a

better Caliornia. And, there are more ways to get involved:

Look or inrastructure issues on your ballot when you vote in the next election.

Ask your elected ocials about what they plan or inrastructure and let them

know your priorities.

Think about ways you and your amily can use resources more eciently. You

could start a recycling program, carpool, host a clean-up day or help your local

school and workplace reduce their energy usage.

Find others who share your concerns and make a plan to work together. Small

groups can make big changes.

For more inormation and links to other sources, visit www.NextTen.org.

Pbli Bildigs

What y a d:

Green Buildings reduce the impact on theenvironment and save money by how they arebuilt and operated. The rst green library in thecountry, the West Valley Branch Library in SanJose, was built using 50% less irrigation waterand 30% less energy than standard buildings.More than 25% o its materials are recycled and20% were made locally. This popular librarysaves money by using ewer natural resources.

Caliornia state and local governments manage thousands o buildings or

public saety and public services, such as fre stations, libraries, hospitals,

public housing and prisons. Most new public buildings and upgrades are unded

by bonds. Bonds are oten proposed to address concerns like overcrowding and

earthquake saety, or to provide more access to public services.

For this generation and the next, we are deciding our future now.

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Next Ten creates tools that empower Caliornians

through deeper understanding o critical issues

aecting our uture economy and quality o lie.

www.nextTe.rg

Next Ten, 209 Hamilton, Suite 250, Palo Alto, CA 94301 650.321.5417 [email protected]

Sources or inormation: the Cali ornia Department o Finance, the Legislative Analysts Oce,the Center or Continuing Study o the Cal iornia Economy, U.S. Census Bureau and the Amer icanCommunity Survey, the Public Policy Institute o Caliorn ia, the Department o Motor Vehicles,the Federal Transit Administration and the American Public Transit Association, the Pacic Institute,New Schools Better Neighborhoods, and the U.S. Green Building Association. Numbershave been rounded. Design by Common Knowledge (ww w.ckgroup.org) and Leah Prahm.

This brochure and related publications are being distributed across Caliornia in partnershipwith libraries, schools and colleges, the League o Women Voters and other organizationscommitted to nonpartisan education. Call, e-mail or visit us online to place an order.

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