04/22/2009 GAAS:191:09 FOR IMMEDIATE RELEASE Print Version |
Gov. Schwarzenegger Announces Restarting of More than 5,000 California Infrastructure Projects
Following the sale of $6.85 billion in bonds, including $5.2
billion in Recovery Act-backed bonds, Governor Arnold Schwarzenegger announced
today more than 5,000 projects will be restarted in California, reviving
economic activity and creating jobs. Restarted projects include everything from
transportation to school construction to environmental and park projects and
many more. These projects had been on hold since December 2008. California is
the first state in the nation to sell Build America Bonds, taking advantage of
this new opportunity provided by the federal Recovery Act.
"California is restarting thousands of critical
infrastructure projects that have been frozen because of tight credit markets
and the state's cash crisis," Governor Schwarzenegger said. "And that, in turn,
means that we can retain jobs, create jobs, and give California's economy an
additional boost at a time when it needs it the most."
"I want to especially commend State Treasurer Lockyer and
his staff for executing a successful sale of bonds. Their hard work will now be
translated into more jobs and a stronger economy."
Specifically, Gov.
Schwarzenegger said that California will now have the necessary funding to
restart all general obligation bond funded projects that had been frozen. The
funding will be allocated as follows:
- $1.7 billion for the state's taxable general obligation bonds to fund stem cell research and stem cell related projects, various housing programs, and additional needs for High Speed Rail.
- $5.2 billion from newly authorized Build America Bonds will provide funding to restart the balance of all state projects that had either been stopped and for those that have been proceeding with non-state funding. This includes projects for California State University, the University of California, California Community Colleges, Caltrans and the Department of Water Resources. In addition, this bond sale will fund grants that had been frozen, including school construction projects, environmental and park projects, grant programs to support clean air (engine retrofits and clean port projects), wastewater treatments projects, improvements to drinking water infrastructure, children's hospitals, public safety grants and local library grant projects. Finally, all outstanding bills not previously funded will be paid.
A complete list of the more than 5,000 projects will be
available shortly at www.dof.ca.gov.
Created by the federal stimulus legislation enacted in
February, Build America Bonds are a new financing tool for state and local
governments, designed to assist state and local governments in financing
capital projects at lower borrowing costs and to stimulate the economy and
create jobs. The program allows issuers to either sell taxable bonds and
receive a direct payment from the U.S. government equivalent to 35 percent of
the interest costs on the bonds, or sell taxable bonds that offer purchasers a
tax credit. The state plans to issue the bonds and receive the direct
reimbursement for repayment of the interest costs.
