Assembly GOP rebuffs governor's bond plan

[davidinalameda]

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/01/26/BAGHRGT3KC1.DTL

In a rebuff to Gov. Arnold Schwarzenegger's infrastructure proposal, Assembly Republicans released on Wednesday a plan to finance public works projects on a "pay as you go" basis rather than rely on long-term borrowing.

Assembly GOP leader Kevin McCarthy of Bakersfield said their proposal is not meant to be a substitute for the governor's plan, but the idea of paying for infrastructure through the general fund needs to be considered as part of any overall discussion.

"I thought what the governor laid out to us was that the problem is infrastructure in California," he said, "the problem being that our infrastructure was built in the 1960s. He's saying, 'Let's do bonds so we can catch up.' But won't we be behind as we go forward?"

The proposal would take 1 percent of the general fund, beginning with next year's budget, and devote it to public works projects. The amount spent would grow each year as long as the state's total revenues grow by $5 billion and education is fully funded. The amount of growth would be either half of 1 percent of the general fund or $750 million, whichever is less.


the rats are deserting the sinking ship