1E

DISASTER PREPAREDNESS AND FLOOD PREVENTION BOND ACT OF 2006.

• This act rebuilds and repairs California's most vulnerable flood control structures to protect homes and prevent loss of life from flood-related disasters, including levee failures, flash floods, and mudslides.
• Protects California's drinking water supply system by rebuilding delta levees that are vulnerable to earthquakes and storms.
• Authorizes a $4.09 billion dollar bond act.
• 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 cost of about $8 billion over 30 years to pay off both the principal ($4.1 billion) and interest ($3.9 billion) costs on the bonds. Payments of about $266 million per year.
• Reduction in local property tax revenues of potentially up to several million dollars annually.
• Additional unknown state and local government costs to operate or maintain properties or projects acquired or developed with these bond funds.