June 26, 2008 - Assembly Passes Economic Stimulus Package

SACRAMENTO –California's sluggish economy received a boost today with the 73-0 passage by the Assembly of legislation authored by Assemblymember Anna Caballero (D-Salinas) to speed up the distribution of $300 million for more than 25 local housing and transportation projects throughout the state.

The legislation, which appropriates $150 million in Proposition 1C housing bond funds and $150 million in Proposition 1B transportation bond funds, passed the Assembly 73-0. The bill was passed by the Senate earlier this week on a vote of 35-0. It now goes to the Governor for his expected signature.

“This is a real economic stimulus package designed to jump start California's economy,” said Assembly Speaker Karen Bass (D-Los Angeles). “These projects create jobs and pump dollars into our economy.”

“These funds come at a critical time for our communities,” said Assemblymember Caballero. “Housing construction is down, jobless rates are up, and the economy is suffering.”

“Getting these funds out for local projects will help stimulate economic activity in cities and communities throughout our state,” she added.

The funds come from Propositions 1B (Transportation - $19.925 billion) and 1C (Housing - $2.85 billion) that voters strongly supported in November 2006. State transportation and housing agencies have allocated some of the funds that were appropriated in the current budget year, but with the 2007-08 fiscal year coming to a close on June 30, the agencies realized that more eligible projects could receive funding immediately if more of the bond funds were authorized.

AB 1252 would provide the following additional funds:

Prop. 1B Transportation Funds

$87 million in Local Streets/Roads for counties
$63 million for Grade Separations
Prop 1C Housing Funds

$100 million for Infill Incentive Grants
$50 million for Transit-Oriented Development (TOD) Grants
For the Proposition 1C funds, the Department of Housing and Community Development estimates that the additional transit-oriented development funding will result in 1048 additional housing units, of which 718 will be affordable (69%); and for the infill incentive grants, an additional 1845 housing units, of which 1309 units will be affordable (71%).

AB 1252 implements projects throughout California that will bring sound investments to our state and help stimulate our economy through infill infrastructure grants and affordable housing construction. These projects include:

A $26.4 million investment at the Grand in Los Angeles;
A $23.1 million investment at the Triangle Development Area in West Sacramento;
A $21 million investment at Fancher Creek Housing in Fresno;
A $19.1 million investment at Township 9 in Sacramento;
A $17 million investment at the 22nd Street Mixed Use Project in San Diego;
A $9.4 million investment at the Union City Intermodal in Union City;
An $8.5 million investment at the Coliseum BART in Oakland;
A $7.6 million investment at Lion Creek Crossing in Oakland;
A $7.5 million investment at Westside II in Inglewood; and
A $7.4 million investment at the Armstrong Senior Center in San Francisco.
As the Sacramento Bee explained in a recent editorial, “[S]peeding up the grants is justified. These strong projects are ready, and the economy needs the stimulus. The Assembly should pass this bill and the governor should sign it into law without delay.”

The additional funding for county street and road projects will provide the most immediate impact in Assemblymember Caballero’s 28th Assembly District. Monterey County will receive $1.1 million for local projects; San Benito County will receive approximately $242,000; Santa Clara County will receive approximately $3.4 million; and Santa Cruz County will receive approximately $702,000.

Both the state transportation and housing agencies are currently processing applications from local jurisdictions for a second round of grants, for bond funds to be appropriated in the 2008-09 fiscal year that begins on July 1.

“I’m very pleased to carry the measure that brings more funding to local areas,” said Caballero. “We need the investment at the local level, and I think it’s important for voters to see the results of their support for these bond measures right in their own communities.”

While Caballero supported the release of additional funds in AB 1252, she said that the criteria for funding the next round of housing funds should be revised to allow rural communities to submit qualifying projects. “The current criteria for transit-oriented development is really oriented towards big cities ,” said Caballero. “It makes it impossible for smaller cities to qualify.

“I have assurances from the Housing and Community Development Department that they will recognize this and will address it in the next round of grants.”

The bill now moves to the governor’s desk for his signature.

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