[env-trinity] Restarting of More than 5, 000 California Infrastructure Projects

Matt_Brown@fws.gov Matt_Brown at fws.gov
Wed Apr 22 14:35:41 PDT 2009

     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   
     “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                           

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