BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1871
                                                                  Page  1

          Date of Hearing:  April 24, 2002

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                              Darrell Steinberg, Chair

                AB 1871 (Hollingsworth) - As Amended:  April 3, 2002 

          Policy Committee:                              Water, Parks &  
          Wildlife     Vote:                            16-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill authorizes the Murrieta Creek Flood Control Project  
          (MCFCP) in Riverside County, therefore making the project  
          eligible for a state flood control subvention.

           FISCAL EFFECT  

          By adding another flood control project to the list of projects  
          eligible for state flood control subventions, this bill  
          increases the state unfunded liability for these subventions by  
          $15.9 million to $22.3 million.  (General Fund.)

           COMMENTS  

           1)Rationale  .  The bill's sponsor, the Riverside County Board of  
            Supervisors, seeks state authorization for the MCFCP to make  
            the project eligible for a state flood control subvention.   
            Depending on the particular parameters involved, the state's  
            share for an authorized flood control project, under the  
            standard federal/state/local financing formula, ranges from  
            17.5% to 24.5% of total project costs.
           
          2)Background  .  Murrieta Creek flows in the southwestern portion  
            of Riverside County and through the cities of Temecula and  
            Murrieta.  Congress authorized the MCFCP in October 2000 to  
            provide 100-year flood protection to these communities and  
            other facilities.  The seven-mile long MCFCP involves  
            development of flood control facilities and recreation areas  
            and restoration of habitat as a project mitigation component.

           3)Project Costs  .  Total MCFCP costs are projected to be $90.8  








                                                                  AB 1871
                                                                  Page  2

            million.  The federal government will pay 65% of project costs  
            (or $59 million), while the remaining 35% (or $31.8 million)  
            must be provided from other sources.  This bill, by providing  
            state authorization for the MCFCP, makes the project eligible  
            to receive 50-70% (or $15.9 million to $22.3 million) of  
            nonfederal funding as a state flood control subvention.  These  
            subventions are customarily provided as items in the annual  
            state budget act.  The governor's proposed budget for FY  
            2002-03 contains no money for flood control subventions. 

           Analysis Prepared by  :    Steve Archibald / APPR. / (916)  
          319-2081