1B

HIGHWAY SAFETY, TRAFFIC REDUCTION,
AIR QUALITY, AND PORT SECURITY BOND ACT OF 2006.

• Makes safety improvements and repairs to state highways; upgrades freeways to reduce congestion; repairs local streets and roads; upgrades highways along major transportation corridors.
• Improves seismic safety of local bridges.
• Expands public transit.
• Helps complete the state's network of car pool lanes.
• Reduces air pollution.
• Improves anti-terrorism security at shipping ports.
• Provides for a bond issue not to exceed nineteen billion nine hundred twenty-five million dollars ($19,925,000,000).
• Appropriates money from the General Fund to pay off bonds.

Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact:

• State costs of about $38.9 billion over 30 years to pay off both the principal ($19.9 billion) and interest ($19.0 billion) costs of the bonds. Payments of about $1.3 billion per year.
• Additional unknown state and local government costs to operate and maintain transportation infrastructure (such as roads, bridges, and buses and railcars) funded with bonds. A portion of these costs would be offset by revenues generated by the improvements, such as fares and tolls.