Time is nearing when state legislators are expected to produce the final version of the state’s annual bond bill and capital improvements act.
Traditionally, the bill arrives in final form on legislators’ desks, immediately prior to a June 30 vote on whether to enact it. Legislators — as well as the public and press — generally get just a few hours to examine the lengthy list of funded projects and spending directives, which is often 250 pages or more, before the vote.
Each fiscal year, the bond bill authorizes the issuance of general obligation bonds by the state to pay for the chosen projects and details how those funds will be spent (and in some cases repaid by municipalities or state agencies). It also appropriates funds from the Delaware Transportation Trust Fund for certain projects, while de-authorizing and re-authorizing funding for some past projects.
Senate Bill 15, the Fiscal Year 2008 Bond and Capital Improvements Act, currently sits in the Senate Bond Committee, where it has been since Jan. 25, 2007. It could emerge from committee to the Senate floor at any time, but is considered unlikely to do so prior to the traditional June 30 reveal.
That could change — if just a little — under legislation introduced by state Rep. Greg Lavelle (R-Sharpley) earlier this year. House Bill 4, which was co-sponsored by Rep. Pam Rep. Pam Maier (R-Drummond Hill) and Sens. Colin Bonini (R-Dover South) and Charles Copeland (R-West Farms), was officially synopsized as follows:
“This Bill requires the annual Budget Bill and Bond Bill to be introduced no later than five (5) legislative days prior to June 30th. This Bill requires the Bond Bill to be introduced no later than three (3) legislative days prior to June 30th. Any amendment would be introduced no later than June 27th for the Budget Bill or June 29th for the Bond Bill.”
Supporters said the goal of HB 4 was to ensure that the legislators, public and press had at least a minimal period of time to conduct a legitimate review of the Bond Bill and annual Budget Bill, rather than the mere hours they have now for both review and feedback. It is part of a wave of “open-government” legislation that has been introduced in the legislature in the past few years, and generally voted down.
Indeed, HB 4 was defeated on its first go-round in the House, in a somewhat close vote on Jan. 24, 2007. The bill was, however, brought back for a second vote, and was passed by the house on March 15. From there, it went to the Executive Committee in the state Senate, where it has yet to see action since.
As a result, it is possible the only chance to examine at length the proposed Bond Bill projects and directives that most of Delaware’s public will get for the coming fiscal year is in the draft version of the bill that is also awaiting action in the Senate. Here are some highlights of that draft.
Beach preservation funded
As it stood on Jan. 25, in the most recent draft available, a number of local projects were funded under the Bond Bill.
Already the source of some controversy generated by those who opposed beach replenishment funded by taxpayers has been some $3.142 million in bond authorization for beach preservation, “to renourish and preserve the State’s beaches.”
That amount goes toward the state’s contribution to the federal-state cost share that is expected to reconstruct beaches in Bethany Beach and South Bethany starting after Labor Day, as well as other periodic renourishment and future projects.
Also in the Bond Bill is some $1.895 million in reverted, reauthorized or reprogrammed funds for beach preservation, left over from prior years, bringing the total in state funding under the draft bond bill to $5.037 million for the 2008 fiscal year.
The remainder of the project funding comes from the federal government, through the U.S. Army Corps of Engineers, which will oversee the project, as well as from the state’s contribution in prior years toward its beach preservation fund — including a portion of the state’s accommodations tax, at 1 percent of the taxed rental and other fees.
Also targeted for preservation under the 2008 Bond Bill is forestland, with $1 million dedicated to its conservation.
The Bond Bill appropriates $3,205,000 to DNREC for the Conservation Cost-Sharing Program, with $1.5 million for the Soil and Water Conservation Program and one third of those funds for use in each county. Some $1.7 million is to go to nutrient management efforts statewide, some or all of which could go to designated “critical areas,” such as the Inland Bays Watershed, Nanticoke Watershed and others as designated by the Secretary of DNREC.
Transportation projects receive allocations
Despite massive shortfalls in the state’s transportation budget in recent years and the discovery late last year that federal funding was not available for “local roadway improvements” on feeder roads leading to State Route 26, which is itself planned for a major overhaul to improve traffic flow and safety, those projects look to be moving forward under the 2008 Bond Bill.
The Route 26 Local Roadway Improvements, from Route 17 to Road 361, have some $3.65 million allocated for them in the 2008 Bond Bill. Meanwhile, the “Mainline” project to improve Route 26 (Atlantic Avenue) from Clarkesville to the Assawoman Canal is noted at $21.48 million from federal funding, plus an additional $5.37 million from the state under this year’s Bond Bill.
The bill also puts $5.5 million into the Municipal Street Aid program.
The draft Bond Bill also indicates provisions for the much-delayed Indian River Inlet Bridge project, but only in the form of $10.4 million in federal funding. Notably, state funding is lacking, as construction has ground to a near standstill with DelDOT plans to vacate the existing design-build contract and re-bid the project after controversy over the original bid award.
The Bond Bill dictates that state funds authorized for the design and construction of a new bridge at the Indian River Inlet and the construction of new park amenities, access and circulation roads, and other transportation and recreation improvements “shall be used, to the maximum extent possible, to match federal funds previously available, or to become available in the future.”
Reimbursement agreements between DelDOT and DNREC are aimed at ensuring that during the period of construction, DNREC will be “indemnified from the loss of critical tourist revenues, which are necessary to fund the operations of all of the State’s outdoor recreational facilities.”
Overall, transportation funding is a big chunk of what is contained in the 2008 Bond bill, at more than $304 million. For road systems, some $244 million is allocated — $23 million in reauthorization from the transportation trust fund in prior years, plus $220 in new spending from the fund. Grants and allocations total $23 million, while nearly $21 million is to go to the transit system. Another $41.5 million is set to go to the support system.
Schools, marina to get improvements
School renovations and improvements also figure prominently in the draft Bond Bill. The bill calls for $3.5 million each in renovation funding for the University of Delaware and Delaware State University — rough the same figure as the entire beach preservation allocation for the coming year.
Delaware Technical and Community College has some $1.8 million in funding allocated for renovations and improvements. A whopping $25 million is set to go toward construction of a new high school in the Cape Henlopen School district, with a 60/40 state/local split on those costs.
The Bond Bill notes $1.5 million appropriated to the new Sussex Central High School in the Indian River School District “to address critical HVAC issues.” It also dictates that “to the extent the Indian River School District is successful in recouping some or all of the above costs from another party, the Indian River School District shall reimburse the State on a dollar for dollar formula” for the appropriations.
Improvements at the Indian River Marina can draw on up to $9.9 million from the Twenty-First Century Fund for the Parks Endowment Account, for the purpose of revitalizing and enhancing public amenities within the Delaware Seashore State Park in and around the Indian River Marina Complex and related support facilities. DNREC is to repay both the principal borrowed and interest on the principal borrowed equal to that interest lost as a result of borrowing from the account.
The bond bill specifies that DNREC is to use workshops, meetings or newsletters to solicit the opinions of users of the marina complex and the general public in making construction decisions related to those improvements.
Assawoman Canal dredge again authorized
Also of note locally is a provision for the dredging of the Assawoman Canal, which finally began last fall after a prolonged court battle over state’s authority to move forward with the project and potential environmental impacts.
State legislators were deemed by state courts in recent months to have been within their rights when they skipped over a possible cost-benefit analysis to mandate that the dredging was beneficial and should take place. It began in September 2006, ceasing in December, and is ready to start up again this September for a likely completion before the winter of 2007.
“It is the express finding of the General Assembly that the benefits of dredging and maintaining the Assawoman Canal exceed the costs of such project and the Secretary of Natural Resources and Environmental Control is hereby directed to initiate all necessary actions to dredge the Canal pursuant to all terms and conditions provided for in the state and federal permits issued for the project and initially authorized by Secretary’s Order 2004-W-0047 dated August 12, 2004,” the 2008 draft of the Bond Bill states, echoing the same language that was contested by the Sierra Club and found in the courts to be valid.
While many of the expenditures authorized in the existing draft of the 2008 Bond Bill have been discussed at length and already hold a place in the public consciousness, the question remains this week as to how any of the items existing in the draft may be changed when the final version of the bill is presented later this month and voted upon.
There could also — and likely will be — be numerous additions to the already lengthy list of funded projects and directives. Delaware voters and legislators will, as always, have to be on their toes to keep abreast of the final form of the Bond Bill as it comes up for a vote on July 1.