Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Supervisor Dave Pine, District 1
Supervisor David Canepa, District 5
Subject: Resolution Endorsing Proposition 4
RECOMMENDATION:
title
Adopt a resolution endorsing Proposition 4 which authorizes the State of California to issue a $10 billion bond for activities related to safe drinking water, wildfire prevention and protecting communities and natural lands from climate risks.
body
BACKGROUND:
Over the past three years, the State of California has funded climate related activities through its budgeting process. Due to the recent budget deficit, the State reduced spending on climate resilience projects. In early July 2024, the State legislature passed, and the Governor signed Senate Bill 867, which placed the Climate Bond, Proposition 4, on the November 5, 2024, ballot. The ballot initiative requires 50% (+1) approval by the voters to be pass.
The last natural resources bond to pass with the voters' approval was Proposition 68 in 2018, which allocated funding to parks, natural resources protection, climate adaptation, water quality and supply, and flood protection.
In 2014, California voters passed Proposition 1, which allocated $7.1 billion toward funding for water quality, supply, treatment, and storage projects. According to the California Natural Resources Agency, approximately $40 million from Proposition 1 and $145.4 million from Proposition 68 remain uncommitted.
DISCUSSION:
Per the California Legislative Analyst’s Office, “Proposition 4 would allow the State to sell a $10 billion bond for natural resources and climate activities. Much of the bond money would be used for loans and grants to local governments, Native American tribes, not-for-profit organizations, and businesses. Some bond money also would be available to State agencies to spend on state-run activities.”
San Mateo County has experienced several life-threatening disasters in recent years, such as the CZU Lightning Complex Fire in August 2020 and more recently the significant flooding in the winter of 2022-2023. If Proposition 4 passes, multiple County departments, as well as OneShoreline, the C/CAG Stormwater Program, RCD, Midpeninsula Open Space, cities, and many nonprofit organizations, will have the opportunity to apply for funding to address a backlog of climate mitigation projects.
Proposition 4 would pay for activities within the 8 broad categories, each with different goals. Some of the activities in each category are summarized below:
|
Key Goals of Proposition 4 Bond Funds (in Millions) |
|
|
|
|
|
Category |
Key Goals |
Amount |
|
Drought, Flood, |
Increase the amount and quality of water available |
$3,800 |
|
and Water Supply |
for people to use and reduce the risk of flooding |
|
|
|
|
|
|
Forest Health and |
Improve the health of forests and protect communities |
$1,500 |
|
Wildfire Prevention |
from wildfires |
|
|
|
|
|
|
Sea Level Rise |
Reduce the risk from sea level |
$1,200 |
|
and Coastal Areas |
rise, restore coastal areas, and protect fish |
|
|
|
|
|
|
Land Conservation and |
Protect and restore natural |
$1,200 |
|
Habitat Restoration |
areas |
|
|
|
|
|
|
Energy Infrastructure |
Support the state shift to more renewable sources of energy, |
$850 |
|
|
such as offshore wind |
|
|
|
|
|
|
Parks |
Expand, renovate, and repair local and state parks |
$700 |
|
|
|
|
|
Extreme Heat |
Reduce the effects of extreme heat on communities |
$450 |
|
|
|
|
|
Farms and Agriculture |
Help farms respond to the effects of climate change |
$300 |
|
|
and become more sustainable |
|
|
|
|
|
|
Total |
|
$10,000 |
|
Source: <https://www.lao.ca.gov/BallotAnalysis/Proposition?number=4&year=2024> |
For these reasons we are asking this Board to endorse Proposition 4.
EQUITY IMPACT:
The County supports policies that further or enhance equity goals in addressing the needs of underserved, disadvantaged, or marginalized residents. At least 40% of the funds will be allocated for projects that benefit vulnerable populations or disadvantaged communities, and at least 10% of the funds will be allocated for projects that benefit severely disadvantaged communities. Endorsing Proposition 4 is consistent with those goals because it promotes the safety and health of its residents, protects the property and livelihoods of individuals, and supports businesses and commerce.
FISCAL IMPACT:
The State Legislative Analyst’s Office estimates that Proposition 4 would cost the State about $400 million annually over 40 years. The availability of these funds could have various fiscal effects on local governments. In some cases, the funding could replace local government money needed to pay for a project, such as upgrading an essential water treatment facility. In other cases, the funding could be used to add additional amenities to a local park. The funding also has the potential to provide savings to the state and local governments by mitigating disasters, if they are used on projects such as improving levees that reduce the impacts from flooding.