The California Strategic Growth Plan

Last year, the Governor and Legislature initiated the first phase of a comprehensive Strategic Growth Plan (SGP) 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. The Governor's Budget includes $13.7 billion of the recently approved bonds to immediately begin building California for future generations.

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.

This year, we must complete the first phase of this Strategic Growth Plan by addressing critical gaps that remain in California's infrastructure:

  • California's dangerously overcrowded prison and jail systems require significant expansion and rehabilitation to protect public safety, as well as ensure the safety of the correctional staff and rehabilitation and safety of inmates.
  • The state's K-12 schools need funding beyond the two years of financing provided by the current bonds to prepare for enrollment growth, reduce overcrowding, and repair dilapidated classrooms in compliance with the settlement agreement in Williams v. State of California.
  • The state's higher education systems need funding beyond the two years of financing provided by the current bonds to prepare for future enrollment growth and maintain the world renowned research capabilities of California's universities.
  • The state's water supply and management systems need to be expanded to meet the needs of population growth and manage the effects of climate change on California's hydrology and water delivery systems.
  • Expanded authority is needed to leverage existing tax dollars and recently approved bond dollars to attract billions of additional dollars in transportation funding through public-private partnerships.
  • California's court system is in need of substantial expansion and repair to address significant caseload increases and reduce delays.
To complete the Strategic Growth Plan, the Administration proposes additional funding for critical infrastructure improvements between now and 2016. With these augmentations, the SGP will fulfill the comprehensive ten-year infrastructure financing plan to rebuild California begun last year. This infrastructure financing plan is the first phase of a 20-year vision to rebuild the foundation of California's unique quality of life and the platform for its powerful economic engine.

As reflected in Figure INF-01 $29.4 billion of new general obligation bonds and $13.9 billion of additional lease-revenue and self-liquidating revenue bonds are proposed to augment the existing funds for the SGP through 2016. Coupled with additional authority to engage in public-private partnerships and utilize design-build concepts, the already authorized and proposed new bonds will leverage an additional $20 billion in significant infrastructure investment. The SGP proposes that the new general obligation bonds be placed on the ballot in the 2008 and 2010 elections as shown in Figure INF-02 and that all bonds be issued in a manner that maintains a prudent debt ratio.
CHAPTER HIGHLIGHTS for The California Strategic Growth Plan Back to Top

 Public Safety
 K-12 Education
 Higher Education
 Flood Control and Water Supply
 Transportation
 Judicial
 Other Natural Resources
 Housing
 Other Public Service
 Accountability
 Affordability
PRINTABLE BUDGET DOCUMENTS Back to Top
Budget Summary - The California Strategic Growth Plan (pdf * - 91K) -
Provides this entire The California Strategic Growth Plan Chapter in pdf format.