Resources
Program Enhancements and Other Budget Adjustments


FLOOD PROTECTION
 On February 24, 2006, Governor Schwarzenegger declared a State of Emergency related to critical erosion damage to levees in the Central Valley. During fiscal year 2006-07, the State of California will spend over $300 million to fund urgent or emergency repairs. The funds are derived from a $500 million appropriation contained in AB 142, which was enacted in 2006 to allow immediate work to begin on flood control improvements.

Proposition 1E, approved by the voters in the November 2006 election, authorized $4.1 billion for levee repair and other flood control system improvements. The proposition was part of a coordinated effort to address California's infrastructure needs, and it reflected a recognition that California's aging levees and other flood control systems are in urgent need of repair and improvement. This recognition was strengthened by the devastation produced by failed levees in New Orleans during and after Hurricane Katrina in 2005. Governor Schwarzenegger has made improving flood protection a very high priority.

Proposition 1E will provide the following amounts in total:

  • $3.0 billion for Central Valley flood control system repairs and improvements
  • $500 million for flood control subventions outside the Central Valley
  • $300 million for stormwater flood management outside the Central Valley
  • $290 million for flood protection corridors and bypasses and floodplain mapping
To address the state's urgent flood control needs, the Governor's Budget includes $629.9 million from Proposition 1E, Proposition 84, and Proposition 13 bond funds and from AB 142, and 75 new positions to allow the continued repair of critical levee erosion sites, provide subventions to help local governments protect their communities from flooding, and continue development of the state's strategic flood management capability. From the total amount budgeted, $37 million in Proposition 1E and 84 funds will be dedicated to five flood control capital projects: Mid-Valley Area Levee Reconstruction, South Sacramento County Streams, American River Watershed (Folsom Dam Raise), American River Watershed (Folsom Dam Raise, Bridge Element), and American River Flood Control - Natomas Features, and for feasibility studies on additional projects. As part of the Administration's effort to eliminate the state's operating deficit, and consistent with the Governor's announced intention in March 2006, an additional $200 million in Proposition 1E funds will reimburse the General Fund for critical levee repairs originally funded by AB 142.


PROPOSITION 84
 In recent years, California's voters have approved a series of bonds to protect and enhance the state's natural resources. Propositions 12, 13, 40, and 50 have made available a total of $10.1 billion dollars that has been used by local governments and state agencies for a wide variety of activities such as water conservation, acquisition of land to protect wildlife habitats, and restoration of damaged ecosystems. Most of the approved funding from these bonds has now been spent or allocated to specific projects and programs, and relatively little remains for new activities.

In November 2006, Proposition 84 was approved by the voters, authorizing an additional $5.4 billion in general obligation bonds for water, flood control, natural resources, park, and conservation projects. Proposition 84 will provide the following amounts:

  • $1.5 billion for drinking water and water quality projects
  • $800 million for flood control
  • $65 million for water planning and project design
  • $928 million for protection of rivers, lakes, and streams
  • $450 million for forest and wildlife conservation
  • $540 million for protection of beaches, bays, and coastal waters
  • $500 million for parks and nature education facilities, including construction of new facilities and renovation and rehabilitation of existing facilities
  • $580 million for sustainable communities and climate change reduction
The Governor's Budget proposes the expenditure of $1.1 billion in Proposition 84 funds in 2007-08. Some important uses of those funds are highlighted below.


CONTINUING TO BUILD A LANDMARK OCEAN PROTECTION PROGRAM
 California has placed a high priority on developing comprehensive programs to protect our increasingly threatened marine resources. Under this Administration, $20 million in one-time funding and $9.5 million in ongoing annual funding has been spent to create marine protected areas, ensure sustainable fisheries, and regulate marine industries.

Proposition 84 dedicates a total of $90 million specifically for ocean protection. This will sustain and enhance marine protection and management programs in coming years, and ensure the development of additional marine protected areas and additional management plans for marine species.


PROVIDING FUNDING FOR THE SIERRA NEVADA CONSERVANCY
 The Sierra Nevada Conservancy was established by statute in 2004 to initiate, encourage, and support efforts to improve the environmental, economic, and social well-being of the Sierra Nevada Region. Proposition 84 allocates $54 million to the Conservancy for the protection of rivers, lakes, and streams in the Sierra Nevada region, along with their watersheds and associated land, water, and other natural resources. The Governor's Budget provides $17.5 million of this funding to the Conservancy in 2007-08.


BIOENERGY
 On April 25, 2006 the Governor issued an Executive Order setting targets for increased production and use of bioenergy in California and calling on state agencies to identify and secure federal and state funding for research, development, and demonstration projects to advance the use of biomass resources.

The Governor's Budget proposes $5.1 million, principally from Proposition 84 funds, to advance this initiative, which is designed to increase the use and availability of renewable energy, reduce reliance on fossil fuels, mitigate the risk of catastrophic wildfire, and ameliorate some of the state's critical waste disposal and environmental problems. The funds will provide grants through the California Department of Forestry to biomass energy generation facilities and enhance an existing biomass removal program operated by the California Tahoe Conservancy.
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CHAPTER HIGHLIGHTS for Resources Back to Top

 Major Accomplishments in 2006-07
 Proposed Resources Spending for 2007-08
image of black pointing arrowProgram Enhancements and Other Budget Adjustments
PRINTABLE BUDGET DOCUMENTS Back to Top
Budget Summary - Resources (pdf * - 38K) -
Provides this entire Resources Chapter in pdf format.
ADDITIONAL INFORMATION Back to Top
Proposed Budget Detail - Resources
Displays Proposed Budget Detail information for Resources.