Alarcon Calls for Controls on Bond Spending

Citing the failure to build schools, roads and a new San Fernando Valley police station, state Sen. Richard Alarcon proposed legislation Friday that would force politicians to keep promises they make when asking voters to approve multimillion-dollar bond measures.

“Local bond measures are out of control. We are not getting what we were promised,” said Alarcon, a Sylmar Democrat, at a news conference.

Alarcon’s bill would hold local government bond measures to the same standards that now govern statewide bond measures--including requirements for regular audits and progress reports. Alarcon said he will introduce a bill next week asking the Legislature to place a constitutional amendment on the November ballot.

As an example, Alarcon said city officials promised voters in 1989 they would build a new Valley police station if they approved $176 million in bonds. Voters did so. But just a few years later those plans were scrapped because the Police Department spent too much money on other projects.

When the city went back to voters in 1995 and 1999 to ask for more bond money, again to build more police stations, the answer was no. Valley voters helped kill the measure.

Alarcon said lack of accountability is the reason why there is no new police station, why less than one-third of promised rail lines have been built and why the Los Angeles Unified School District has fallen behind in its school reconstruction projects--all financed by bonds.

The Valley Industry and Commerce Assn. applauded Alarcon’s initiative.

Local government has been pulling a “bait and switch” scam on local voters for years, said David W. Fleming, a past chairman of the association and a Los Angeles city fire commissioner. Instituting stricter controls is the only way to regain the confidence of voters, he said.

“We have a credibility gap,” Fleming said at the news conference. “Voters have lost trust in government when it comes to spending bond funds. Municipal bonds today are all but dead on arrival.”

Contacted Friday, Los Angeles City Councilwoman Laura Chick said she was not certain if she would support Alarcon’s proposal. But she endorsed adding more accountability to the bond process.

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As chairwoman of the council’s government efficiency committee, Chick said she has pushed through new regulations to improve the city’s process for contracting and management in bond projects. Chick said she has urged colleagues to make very specific and detailed presentations when proposing new bond measures.

“We need to be extremely thoughtful before we ask for a bond,” Chick said. “We don’t want to put a bond measure on the ballot hastily.”

In recent years, city officials have been providing more information to elected officials about the progress of bond projects. Still, she said she would rather see regular reports from the city controller.

“We need to put a watchful eye on how that money is spent,” Chick said.

Alarcon cited other examples of bond measures he believes have fallen short of expectations.

In 1980 and 1990, county voters were shown maps of proposed subway and light rail lines that would be built if they approved a half-cent increase in sales tax for transportation improvements.

Alarcon compared that map, which showed improvements all around the county, to a map of the comparatively few rail lines that have actually been built.

Alarcon also cited the continuing problems the Los Angeles Unified School District has had in managing funds from Proposition BB, a $2.4-billion bond measure approved by voters in 1987 to renovate schools.

Page Layne Miller, a resident who has been active in efforts to support police officers, said the constitutional amendment is needed.

“There should be real accountability and perhaps consequences. Everyone takes credit for raising the money but when it goes south, no one takes responsibility,” Miller said.