Senate OKs $1.3 Billion in Bond Issues for Ballot

Rushing to beat a deadline, the Senate on Thursday approved placing $1.3-billion worth of bond issues before voters on the November ballot, including a controversial $200-million proposal to clean up 80 hazardous-waste dump sites around the state.

The bills, which are subject to approval by the Assembly and Gov. George Deukmejian, also would provide $800 million for school construction, $200 million for rental housing for the elderly and $85 million to restore the habitats of endangered species.

All the measures were approved unanimously as the Senate acted to meet today’s deadline for clearing legislation from its house of origin.

However, the bill on a toxic cleanup bond issue continued to provoke debate over who should be responsible for repaying the bonds when the cost of cleanup cannot be recovered from the polluters themselves.

The author of the toxics bond bill, Sen. Art Torres (D-South Pasadena), argued that industry ought to pay the cleanup costs through increased fees for disposal of hazardous waste. But his opponents, including Sen. Becky Morgan (R-Los Altos Hills), argued that those industries are already paying their share of cleanup costs through existing fees.

In order to obtain enough votes to get the measure out of the Senate, Torres had to agree to what he termed “oil company amendments”--provisions that would require 75% of the repayment from the taxpayers and 25% through increased industry fees.

“This $200 million will be paid back by responsible parties first, if we can find them, if they haven’t declared bankruptcy to avoid cleanup,” Torres said. “If we can find the rascals to clean up their messes, we’ll get the money from them. But for the most part we have been very unsuccessful in finding those rascals.”

Morgan argued that industry is already paying increased fees required under a $100-million toxics bond measure approved by voters in 1984 and that it is only fair that taxpayers carry the largest share of the burden on the new $200-million proposal.

Gov. Deukmejian, who agrees on the need for the $200-million bond issue, has sided with Morgan in the dispute over who should pay.

In past years, Deukmejian has called for a limit on the total amount of bond issues to be put before voters on primary and general election ballots, but so far he has set no such ceiling.

He already has signed a measure placing an $850-million Cal-Vet home loan bond issue before the electorate in June. And he has been asking for $500 million in bond money for prisons.

But he has taken no position on any of the other bond proposals, according to his deputy press secretary, Kevin Brett.

The $800-million school bond proposal, by Sen. Marian Bergeson (R-Newport Beach) received broad support from school districts, school administrators and the state Department of Education.

In 1984, voters approved a $450-million bond issue for school construction and remodeling, but legislative analysts indicate that more than $4 billion will be needed over the next 10 years.

The senior citizen housing bill, by Sen. John Garamendi (R-Walnut Grove) would provide $200 million for construction of rental housing for low- and moderate-income individuals aged 60 or older. The state would be able to make loans to either public agencies or private developers.

The $85-million wildlife habitat bond issue, by Sen. Robert Presley (D-Riverside) would permit the state to acquire, enlarge and protect land for endangered plants and animals.