Topic > The Pros and Cons of Proposal 84 - 1096

These areas may include the eligibility of private water companies, as the proposal does not specify whether private water companies are eligible for grants and loans to maintain water quality. Additionally, flood control projects are a concern, because once again the measure does not specify whether funding is obtainable for any flood control projects statewide. Additionally, additional legislative guidance may be needed for green projects, stormwater contamination, groundwater contamination, and administrative costs. “Proposition 84 limits administrative costs to 5 percent of the funds appropriated for any program, however, it does not provide a program definition or a definition of what must be included in administrative costs” (Proposition 84). In addition to implementing the legislation, there are other impacts of the measure that will fall on state and local governments. These primary impacts include actual annual bond costs, property taxes and additional operating costs. The costs of the bonds will be paid over a 30-year period and the interest rate would average about 5%, so the $5.4 billion would actually amount to $10.5 billion, after the interest rate. Therefore, to pay off the bonds, the average payment would be around $350 million per person