This week, the RCRC Board of Directors voted to “Oppose” Proposition 53, the “No Blank Checks Initiative.” This measure would require statewide voter approval for revenue bonds for projects that meet certain conditions, including: 1) when projects are being funded via revenue bonds that exceed $2 billon; 2) when the state is a partner to a project in conjunction with another entity; and 3) when projects would be owned, operated, or managed by the state.
Currently, general obligation bonds are required to receive voter approval; but, unlike general obligation bonds, revenue bonds are not serviced by the State’s General Fund. Rather, revenue bonds are serviced via a dedicated revenue stream generally associated with the activities surrounding the construction of the project (i.e. parking fees associated with the construction of a municipal parking lot).
In the deliberations over Proposition 53, members of the RCRC Board of Directors expressed a number of concerns, including the potential impact of the measure on the proposed Sites Reservoir in Glenn/Colusa Counties – a water development project that would be funded by the state to a significant degree. Furthermore, there is concern to what degree, if any, local governments would be subject to the conditions proposed in the ballot measure.