Arnold Schwarzenegger,  California,  Election 2006,  Politics

Arnold Schwarzenegger Watch: Toll Roads in California’s Future?

January 5, 2006 /

California Gov. Arnold Schwarzenegger speaks during the 68th Street School in Los Angeles, Wednesday, Jan. 4, 2006. Schwarzenegger visited the school to discuss education and after-school program funding.

Los Angeles Times: Gov. to Seek New Freeway Toll Lanes

Gov. Arnold Schwarzenegger will propose today adding special toll lanes — some exclusively for trucks — to California’s most congested freeways, and speeding their construction by easing environmental reviews.

The toll proposal is only part of a multibillion-dollar public works agenda the governor will unveil during his annual State of the State speech, administration officials said Wednesday. But it would have a direct impact on the quality of life for millions of Californians and challenge their long-standing aversion to toll lanes.

How many times do Californians have to asked to fund transportation projects by taxes or indirect taxes (bonds)? the tax money is always diverted to the schools, other social programs or simply pay Sacramento’s debt service on previous budget shortfalls.

There are transportation needs. The California Legislature has been too interested in funding pensions for their UNION contributors, approving Gay Marriage or Driver’s licenses for illegal immigrants.

But, will California voters buy into this plan?

Can we afford it?

Flap refers you to a piece that appeared in yesterday’s Flash Report from Donna Arduin, Governor Arnold Schwarzenegger’s first Director of Finance.

California’s debt load is another concern. Moody’s Investor Service reports that the state’s net tax supported debt is ninth highest in the country on a per capita basis and 12th highest as a percentage of personal income, and double the national average by either measure. California’s debt levels were similar to other states in the early 1990’s, and have grown out of proportion only in the last four years, from both the budget borrowing and voter approved debt issuances.

With that in mind, the state should make sure any future debt financed projects are truly investments in the state’s long term growth, that private sector ideals are put to use as much as possible, such as user and beneficiary fees, and congestion pricing for roads, and that the state’s structural deficit, which reflects past commitments not yet paid for, is addressed first. If the state is not going to cut up its credit cards, it should at least pay them off before using them again.

The Governor and Legislature have alot of convincing ahead of them.

Two years ago the voters were asked to approve bonds (Prop. 57) to pay off a structural budget deficit. The deficit has now disappeared or been ameliorated by a one time infusion of funds by a tax amnesty plan and the potential sale of Prop. 57 Economic Recovery bonds.

Shouldn’t the State of California pay off its debts FIRST and BALANCE their budget before undertaking a massive infrastructure bond initiative?

Stay tuned……..

Previous:

Arnold Schwarzenegger Watch: Infrastructure Bond Trial Balloon – $25-27 Billion


Arnold Schwarzenegger Watch: Governor Expected to Propose College Fee Freeze

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