Strategic Growth Plan, Bond Accountability

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Purpose of This Site

This web site has been created at the direction of Governor Schwarzenegger to enhance transparency in state government activities, and earn the trust of the voters who approved an historic level of bond funding in November 2006 for the purpose of ensuring a vital infrastructure future for California.

Through bipartisan cooperative action, the Governor and Legislature have initiated the first phase of a comprehensive Strategic Growth Plan to address California’s critical infrastructure needs over the next 20 years. California faces over $500 billion in infrastructure needs to meet the demands of a population expected to increase by 23 percent over the next two decades. In November 2006, the voters approved the first installment of that 20-year vision to rebuild California by authorizing a series of general obligation bonds totaling $42.7 billion.

Much progress will be made with this initial funding. Thousands of new and renovated classrooms will be built throughout the state, transportation construction projects will begin to reduce congestion of goods and traffic, and work on dozens of critical levee improvements is already underway.

However, additional investments in the state’s infrastructure will be needed if California is to maintain its highly valued quality of life and continue its economic growth.  Consequently, the Governor is proposing an additional $42.3 billion of bonds to fund infrastructure improvements over the next decade.

Last November, the voters demonstrated their understanding of the need for infrastructure growth and revitalization by approving five separate bond measures.  By approving these bonds, they also placed faith in their government to use that funding wisely and efficiently.  Before voters will approve a second series of bonds, government must demonstrate that the voters’ faith was not misplaced.  To assure the public that bond funds will be used as the voters intended, this web site provides a window through which to view how bond funds are being spent.

On January 24, 2007, Governor Schwarzenegger signed an executive order to establish guidelines and procedures for spending Strategic Growth Plan bond funds efficiently, effectively and in the best interests of Californians, and directed the Department of Finance to create a web site for the public to readily access information on how bond proceeds are being utilized.

“The people want us to spend their money wisely and efficiently. We must uphold their trust,’” said Governor Schwarzenegger at a cabinet meeting where he signed the executive order. “That’s why I’m signing this executive order to bring full accountability and transparency to the entire process. I look forward to working with the Legislature to make the Strategic Growth Plan bond proceeds are spent prudently.”

Specifically, the executive order directs government agencies that spend bond funds to institute a three-part accountability structure that includes:

  • Front-End Accountability: Establishing criteria for the expenditure of bond funds that will achieve the intended outcomes of the bonds.
  • In-Progress Accountability: Instituting ongoing actions to ensure that the infrastructure projects or other activities funded from bond proceeds are staying within their original scope and cost.
  • Follow-Up Accountability: Auditing completed projects to determine that the expenditures were consistent with the front-end criteria and all applicable state laws.