Policy & Legislation
PMIB Allocates up to $500 Million for Infrastructure Projects
March 25, 2009
At its March 18, 2009, meeting, the Pooled Money Investment Board (PMIB) voted to spend up to $500 million on bond-funded infrastructure projects. Now it is up to the state Department of Finance (DOF) to set priorities among nearly 6,000 road, home-development, school, and other projects waiting for funding.
A group of nonprofit developers and advocates met with DOF Chief Deputy Director Tom Sheehy on Monday to outline the job-generating, home-creating, and capital-leveraging benefits of prioritizing affordable home developments. DOF also will rely on a chart of "funding needs" developed by the state Department of Housing and Community Development.
Bond Sale Wildly Successful
This week, State Treasurer Bill Lockyer sold $2.5 billion more in tax-exempt general obligation bonds than expected. Lockyer’s original bond offering of $4 billion grew to $6.54 billion due to strong investor demand.
Of the $6.54 billion, $3.93 billion will be used to repay the PMIB account for loans already made to various state departments.
According to the treasurer’s office, the remaining $2.6 billion is available for infrastructure projects delayed or stopped because of the financing freeze imposed last December. Some Proposition 46 and 1C developments will be eligible for these funds, if the underlying program can use tax-exempt bond proceeds. Others will have to rely on the $500 million released by the PMIB from its cash account and a taxable bond sale that Locker hopes to hold in April.
Temporary Help from Feds?
On March 17, 2009, the California Tax Credit Allocation Committee (TCAC) issued its proposed regulations for spending federal stimulus funds. The regulations cover both the Tax Credit Assistance Program (TCAP) and Exchange Funds (grants in lieu of tax credit allocations).
According to TCAC staff, Section 1032(b)(3) is "placeholder language" signaling TCAC is prepared to use the federal funds to help resolve the PMIB problem. Staff is working to determine how much is needed by bond-funded projects and in what form. They are confident they will have solid answers by April 30, the deadline for adoption of final regulations.
Keeping up the Pressure
The informal PMIB Coalition meets tomorrow afternoon to discuss strategies for maintaining pressure on the DOF, Lockyer, and State Controller John Chiang. Coalition members have written letters to all three and lobbied legislators who have affected developments under construction in their districts.
- TAKE ACTION! Send letters to the PMIB and legislators who have affected developments in their districts.
- Use our KEY MESSAGES.
- DEADLINE: Please send your letters by Friday, April 03, 2009.
Contact Julie Snyder, (916) 447-0503 x 102 or .
