Legislative leaders had identified replacing the $11.1 billion water bond on the November ballot with a smaller bond as a top priority in the last month of the legislative session, but whether it would all come together was in doubt until last Wednesday afternoon.
Polling on water issues - including a water bond - had revealed that the public is well aware of the drought, but that a smaller bond is preferred. A recent Public Policy Institute of California (PPIC) poll revealed that 51 percent of likely voters would vote yes on the $11.1 billion bond, but that support increases to 59 percent of likely voters on a smaller bond. Active opposition to a bond is also a key factor impacting the potential of passage, and the Governor had publically stated that he would campaign in opposition to the $11.1 billion bond if no agreement was reached to replace it.
Issues at the heart of the negotiations included the total dollar amount, the dollar amount of funding for the public benefits of water storage, where Delta funding would be directed (State Agency versus the Delta Conservancy), and where the watershed funding would be directed (State Agencies versus State Conservancies).
In response to the Secretary of State’s August 11, 2014 deadline to start printing the November 2014 ballot pamphlet, the Legislature passed and the Governor signed SB 1195 on August 11, 2014, which delayed the beginning of the mailing of the state ballot for the November 4, 2014 statewide General Election by two days. The importance of this delay was that if the November 2014 ballot went to print on August 11, 2014, the pro and con arguments on the $11.1 billion water bond would appear in the November 2014 ballot pamphlet sent to voters.
On August 8, 2014, Senate Republicans introduced SB 2013 (Nielsen/Vidak), an $8.7 billion bond that included $3 billion for the public benefits of water storage. On August 11, 2014, the Governor’s bond proposal was amended into SB 866 (Wolk/Steinberg) and AB 1471 (Atkins/Rendon). The Governor’s $6.995 billion bond included $2.5 billion for the public benefits of water storage. Discussions between the Administration and legislative leaders continued in an attempt to reach an agreement.
Agreement was ultimately reached Wednesday, August 13, 2014, on a $7.545 billion bond - $7.12 billion in new debt and the repurposing of $425 million from Propositions 84, 50, 13, 204, 44, 82, and 1E. Key to reaching agreement was the increase in the funding for the public benefits of storage from $2.5 billion to $2.7 billion.
The Assembly and Senate passed both SB 866 and AB 1471 Wednesday evening and shortly thereafter Governor Brown signed AB 1471. The water bond will be Proposition 1 on the November ballot. The Governor vetoed SB 866 as it was identical to AB 1471.
AB 1471, the Water Quality, Supply, and Infrastructure Improvement Act of 2014, can be accessed here. An outline of the bond can be accessed here.