Brown Opposes Governor’s Bond Plan for Highways

Assembly Speaker Willie Brown announced his opposition Tuesday to Gov. George Deukmejian’s new $2.3-billion bond proposal to improve California’s transportation network and predicted that the plan will not pass the Legislature.

The San Francisco Democrat, the first major leader of his party to speak out against the proposal unveiled by the Republican governor Saturday, asserted that issuing bonds to finance long-term transportation construction projects is “prohibitively expensive” because of interest costs.

Brown, during a Capitol news conference, argued that the bonds would cost $2 to pay back for every $1 borrowed. Deukmejian Administration officials estimate a lower cost--about $1.70 per $1 of face value--or 70 cents interest for every $1 borrowed.

The Speaker also criticized the governor’s proposal to pay off the bonds by using funds that accumulate in the state’s general fund treasury, but cannot be spent because of the limit on government spending approved by voters in 1979.

“I would hope he would use that money more intelligently than that,” Brown said.

The Speaker left the door open to compromise, however. He said if Deukmejian agrees to use some of the general fund money for public schools, community colleges and other local government programs, then he would be “willing to embrace it.”

Otherwise, the Speaker said, he considers the governor’s plan a “single-interest, specialty kind of legislation.”

Later, Deukmejian reiterated his position that a major infusion of money is needed for the transportation system because of daily traffic jams on the state’s highway system.

“I have proposed a program to substantially increase our highway and road-building efforts and to better manage traffic on the roads we already have so that you can get to where you want to go with fewer delays,” the governor told a luncheon audience of about 1,100 people.

After the speech to the California Federation of Republican Women, Deukmejian met with reporters and told them he hopes Brown “will take an objective look” at his program. Deukmejian argued that he already is proposing “considerable additional” spending for education and other programs.

The governor also noted that Brown was among the legislative leaders who supported $1.8 billion in various bond measures approved during the general election in November.

Deukmejian acknowledged that highway construction historically has been financed by “user taxes” such as levies on each gallon of gasoline and truck weight fees. But he said his bond plan is “a fair approach” because “it spreads out the cost of the system” and does not just pass on to motorists the burden of supporting the highway network.

Brown favors giving local governments the right to increase the gasoline tax to finance transportation projects.

The state’s other top Democratic legislative leader, Senate President Pro Tem David A. Roberti (D-Los Angeles), so far has not taken a public position on the governor’s plan, according to a spokesman. However, Deukmejian’s proposal is strongly supported by a Roberti ally, Sen. Wadie P. Deddeh (D-Chula Vista), who has agreed to sponsor the proposal.