State spending billions on water projects — without borrowing
State politicians have done something laudable, and it has gone unheralded. They haven’t even bragged about it themselves. So, here’s some heralding.
They’ve authorized spending about $5 billion on drought-related water projects without charging it on the credit card.
They’re going to pay cash. That will save taxpayers roughly twice the projects’ cost for tacked-on interest.
Normally, the politicians pay for water endeavors with borrowed money. And the state goes deeper into debt.
As of last November’s election, the state was making $7 billion in annual payments on $80 billion in bonds.
Then, in that election, Californians authorized $5.5 billion more in bonds for stem cell research.
Cash financing not only was possible, it was prudent. Tax revenue was pouring into state coffers like never before. There was an estimated $38 billion in discretionary surplus money.
Sen. Anthony Portantino, D-La Cañada Flintridge, had introduced a $5.6 billion bond proposal for water supply, drought preparation, flood protection and wildfire prevention.
Portantino’s policy proposals plus much more — 25 bills in all — were wrapped into what Newsom predictably crowed was “the largest climate action package in state history.” The total cost: $15 billion — basically paid in surplus cash.
The money will be spent on a wide variety of worthy projects. They range from helping small, low-income San Joaquin Valley communities dig deeper wells where holes have dried up, to potentially assisting affluent La Cañada homeowners in Portantino’s district get off wasteful septic tanks.
No specific projects have been identified in the water package. Local entities must apply to state government agencies for the money, and often put up dollars of their own.
The move from septic tanks to sewers — not just in La Cañada but throughout California — would be a water saver. That’s because sewer water can be recycled and used for landscaping.
He says 2,000 La Cañada homes are on septic tanks because the cost of hooking up to sewers is prohibitive — up to $150,000 each due to steep hillsides and granite. The goal is to lower the homeowner cost to a more customary $10,000 to $25,000.
Sewer hookups are part of a $1.3 billion item largely for wastewater infrastructure.
One huge problem in the San Joaquin Valley is that farmers have been overpumping groundwater for decades, and it’s disappearing.
“We’ve been withdrawing without refilling,” state water resources director Karla Nemeth says. “It’s really important these groundwater basins be brought into balance.”
There’s $300 million to help do that. By law, it must be achieved within 20 years.
That invariably will mean fallowing hundreds of thousands of acres. So, there’s $50 million “to help with land repurposing,” Nemeth says. She suggests some farmers may want to switch from growing crops to planting solar panels as California moves more toward reusable energy.
Agriculture eats up 80% of California’s developed water. One little almond drinks a gallon before reaching your mouth. Urban and industrial use consume only 20%.
The draining of San Joaquin Valley aquifers has caused the land to sink several feet in some places, badly damaging major water canals. There’s $200 million for canal repairs over two years.
Another big groundwater problem is in the San Fernando and San Gabriel valleys. Aquifers were contaminated by aircraft manufacturing. So, $400 million was set aside for groundwater cleanup.
There’s also a $500 million kitty to immediately help local governments manage scarce water and provide drought relief.
“We’re getting California prepared for a third dry year,” Nemeth says.
But they’re also preparing for possible heavy drenching, like much of California received in recent days.
There’s $638 million for beefing up flood control. Thankfully it’s money on hand.