The California Strategic Growth Plan
Flood Control and Water Supply

As a result of the Governor's emergency declaration for California's levee system in February 2006 and funding provided by the Legislature in the 2006-07 Budget, key repairs to 33 critical erosion sites protecting Central Valley communities were completed in record time. The State is now advancing funds and working with the federal government to repair 71 additional levee erosion sites damaged in last year's floods. An unprecedented effort to evaluate 350 miles of urban levees for hidden defects has begun, and the state is leading a coordinated effort involving federal and local agencies to avoid a major flood disaster in California.

In 2005, the Administration published the California Water Plan Update which called for implementation of two initiatives to ensure reliable water supplies: integrated regional water management and improved statewide water management systems. In January 2005, eight months before Hurricane Katrina flooded New Orleans, the Governor issued Flood Warnings: Responding to California's Flood Crisis, calling for a variety of flood management improvements and reforms to reduce the potential for such disasters in California. In 2006, the Administration published Progress on Incorporating Climate Change Into Management of California's Water Resources, the first detailed analysis of the effects that climate change is expected to have on water and flood management in the state.

The infrastructure package approved by the voters in November 2006 includes $4.59 billion for levee repair and flood management (Proposition 1E) and approximately $1.5 billion for integrated regional water management including wastewater recycling, groundwater storage, conservation, and other water management actions (Proposition 84). Together, these investments provide substantial funding toward addressing California's flood and water management challenges.

Two critical areas remain unaddressed that are vital to ensuring California has reliable water supplies and is able to cope with the effects that climate change will have on water supply and flood protection: storage and conveyance,

California must expand its water management and delivery system, including surface storage, groundwater storage and conveyance facilities. In this phase of the Strategic Growth Plan the Administration proposes a total of $5.95 billion through 2016. Of this amount, general obligation bonds will provide $3.95 billion and revenue bonds will provide $2.0 billion. The proposal consists of four parts:

  • Water Storage-$4.5 billion ($2.5 billion general obligation bonds and $2.0 billion revenue bonds). This funding will be dedicated to the development of additional storage, which, when combined with the Regional Water Management investments of Proposition 84 and the flood system improvements of Proposition 1E, will help to offset the climate change impacts of reduced snow pack and higher flood flows. This strategy includes construction at the two most likely locations for surface storage in the state, Sites and Temperance Flat Reservoirs. The water supply yield from the two reservoirs could provide up to 500,000 acre-feet per year. In addition to this increased water supply, the reservoirs provide other benefits, such as enhanced flood management capability, improved Delta water quality, and improved wildlife habitat. The water storage costs would be shared with the state's taxpayers providing up to 50 percent and the non-state entities investing in the direct benefits from the reservoirs. The state's share of the cost for the storage projects would be funded with $2.0 billion in general obligation bonds for benefits such as flood control, ecosystem restoration, and water quality improvements that serve the whole state. The non-state portion would be funded from $2.0 billion in revenue bonds secured by contract payments to the state from the water suppliers who would benefit from the new storage. In addition to investments in surface storage, $500 million in general obligation bonds will be dedicated for grants to augment local investment in groundwater storage projects, providing an additional 500,000 acre-feet of annual yield.
  • Delta Sustainability-$1.0 billion (general obligation bonds). Leveraging anticipated federal and local funding sources, this funding will be dedicated to implementing a sustainable resource management plan for the Delta. To assure the reliability of the state's major water supply systems, investments will be made in improving water conveyance, water quality, and the Delta ecosystem, as well as strategic improvements in Delta levees. These investments would eliminate the seismic risk to water supplies derived from the Delta, protect drinking water quality and reduce conflict between water management and environmental protection.
  • Water Resources Stewardship-$250 million (general obligation bonds). This funding would support implementation of a settlement on the Klamath River, provide for elements of Salton Sea restoration identified in the Salton Sea Restoration Act and related legislation enacted in 2003, contribute to restoration actions on the San Joaquin River, and supplement successful restoration projects on the Sacramento River and its tributaries as well as in the Delta.
  • Water Conservation-$200 million (general obligation bonds). This funding will augment $1 billion in funding provided by Proposition 84 and support the Integrated Regional Water Management (IRWM) program. IRWM is designed to encourage integrated regional strategies for management of water resources that will protect communities from drought, protect and improve water quality, and improve local water security by reducing dependence on imported water. The proposed funding will provide targeted water conservation grants to local communities that coordinate the planning of their shared water resources. These investments in water conservation will yield an additional 200,000 acre-feet per year, protect water quality and will reduce energy use, urban and agricultural runoff, and urban effluent.
image of backward arrow image of forward arrow
CHAPTER HIGHLIGHTS for The California Strategic Growth Plan Back to Top

 Public Safety
 K-12 Education
 Higher Education
image of black pointing arrowFlood 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.