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Voters will cast
ballots Nov. 5 for a wide array of measures that could mean
a lot of local work for design and construction firms. Financing
for schools and highway projects is at the top of the list
of issues for voter approval, but under pressure from dwindling
state and municipal budgets.
California has the most money at
stake, with billions of dollars of investment in school, transportation,
water and building projects at the mercy of voters. The state's
public school districts and community colleges collectively
are proposing an estimated $10 billion in local bond issues,
including $3.3 billion in Los Angeles for new construction.
Statewide, the focus is on Proposition
47. At $13.05 billion, it is the largest bond measure in the
state's history, contends Curt Pollock, director of management
consulting services for School Services of California Inc.,
an educational consulting and lobbying firm. The largest share--$11.4
billion--would be used for construction of elementary, middle
and high schools. Colleges would receive $1.65 billion. If
successful, the ballot measure will be followed by a companion
$12.3-billion bond measure on the 2004 primary ballot.
Housing projects in California
would get a $2.1-billion boost from Proposition 46, which
would provide $1.1 billion for low-cost loans to build rental
housing. Together, the school and housing measures "could
help to soften the bottom" of the economy and of the construction
sector and encourage cautious public and private owners to
move ahead with projects, says Thomas T. Holsman, executive
director of the Associated General Contractors of California.
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| (Photo
courtesy of CTE Engineers) |
Included in a wide-ranging $3.44-billion
water quality and wetlands protection initiative is $500 million
for water treatment and wetlands restoration, plus $100 million
for desalination and other water projects. Passage of San
Francisco's Proposition A, a $1.6-billion bond issue, is deemed
critical to the planned $3.6-billion upgrade of the region's
aging Hetch Hetchy water delivery system.
California's most controversial
ballot measure would permanently allocate 30% of motor vehicle
sales and user taxes to a patchwork of transportation projects,
ranging from buying school buses to modernizing passenger
rail infrastructure. But critics charge that some of the measure's
financial backers would benefit from funds earmarked for specific
projects.
In Washington, state transportation
officials and the construction industry are anxiously awaiting
the vote on Referendum 51, which would raise $7.8 billion
over 10 years through a phased-in 9¢-per-gallon gas-tax increase
and other user fees. Supporters are counting on the measure
to make a dent in an estimated $100-billion transportation
backlog. Priority projects include freeway widening and bridge
replacements. The measure faces opposition from some environmental
groups who want the state to invest in mass transit.
In Clark County, Nev., voters will
consider a tax increase to raise $2.7 billion over 25 years
for roadway and transit improvements. Money would come from
increased developer fees plus jet aviation fuel and retail
tax increases of .25%. An estimated 1,000 new residents move
to Clark County every week. Population projections over the
next 20 years could see the county, home of Las Vegas, swell
to 2.6 million residents.
A statewide initiative seeks exemption
from Nevada's debt limit for school construction. "There are
so many questions on the ballot, we fear that people will
become overwhelmed and stop voting," says John Madole, executive
director for AGC of Nevada.
In New Mexico, voters will consider
whether to issue $93.4 million in bonds for public education,
higher education and other educational institution capital
improvements and procurements. Projects include facility renovations,
infrastructure improvement and new construction at all six
universities, eight two-year post-secondary schools and three
state schools. Another bond measure would provide $1.5 million
for dam renovation and rehabilitations.
In Boulder County, Colo., voters
will determine whether to increase sales and user taxes by
.25%, starting in 2004 and ending June 30, 2023, in order
to raise $14 million annually to pay for transportation projects.
Half of the funds will be used for highway improvements and
the other half for transit improvements.
In response to increasing geologic
knowledge about the potentially dangerous seismicity underlying
Oregon, voters there are considering two separate ballot measures
to authorize general obligation bonds for the rehabilitation
and seismic upgrading of older public buildings. No limit
to the amount of the bonds is specified in either measure.
Funds will be issued on an as-needed basis. If approved, the
bond measures are expected to produce substantial new work
for engineering and construction firms.
"In Salem alone, the state capital,
there are estimates that a third of the public buildings would
not withstand a moderate earthquake," says Jessica Harris,
legislative affairs manager for the Associated General Contractors
Oregon-Colum-
bia Chapter. Thousands of buildings
could be eligible for upgrades, ranging from large state university
buildings to local police stations. The measures prescribe
a triage approach, requiring an engineering assessment prior
to rehab to ensure that high-risk buildings receive priority
attention.
Alaskans will be voting on a bond
authorization of $227 million to pay for transportation projects.
About $124 million will be allocated to state transportation
projects, with the remainder slated for federally supported
projects. The largest proposed project is the Abbot Loop Extension
and reconstruction in Anchorage, at a cost of $37 million.
Funding for renovation and upgrades
of museums and educational buildings also is on the Alaska
ballot. The state is looking to raise $237 million with general
obligation bonds. The bulk of the funds are slated for 52
projects to upgrade, renovate, remodel and, in some cases,
replace local public school buildings. Beyond these projects,
roughly $62 million of the total is allocated for maintenance,
renovation and technology upgrades at the University of Alaska.
In Michigan, Proposal 2 would authorize
the state to borrow up to $1 billion to finance sewage treatment,
stormwater and water pollution projects. It also authorizes
the state to issue general obligation bonds to pay for the
work, with bond repayment coming from the state's general
fund.
On the East Coast, there are two
bond issues on the Maine ballot. Voters there will decide
whether to authorize general bonds to build a new correctional
facility and provide maintenance for existing prisons. A second
measure would grant general bonds for water pollution control
and other environmental issues.
In Rhode Island, voters will consider
whether to approve $55 million in bond authority to build
the new State Municipal Fire Academy and construction of a
new state police headquarters facility. Another referendum
seeks approval for $564 million in bonds to match federal
funds for transportation programs.
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