The real cost of the twin-tunnels project to carry water through the Sacramento-San Joaquin River Delta is closer to $67 billion -- not the $25 billion that the Brown administration has been publicly saying. The higher price tag reflects long-term financing costs ands wasn't even included in the 34,000 pages of data released recently by DWR.
From the Mercury-News' Paul Rogers: "Many large public projects are funded with money from bonds. But the tunnels project would rely on bond borrowing to cover a huge percent of its costs: roughly 85 percent. By comparison, the financial plan for Brown's other major project, high-speed rail, relies on state bonds for only 12 percent of its funding -- $8 billion of the $68 billion price tag -- with the rest, he hopes, to come from Congress, private companies and others."
"A general rule for government bonds is that they double the cost of projects once interest is paid. But the borrowing costs for the tunnel project could cause its construction costs to more than triple, according to Westlands' estimates. They include inflation, potential delays from lawsuits and techniques that water agencies could use in which they pay no interest or principal for the first few years, increasing the overall cost."
A former employee of a major Sacramento lobbying firm contends in a lawsuit that the firm illegally directed contributions to dozens of politicians. A case involving the former employee, meanwhile, is under review by the Sacramento County district attorney's office.
From the Bee's Patrick McGreevy and Paige St. John: "The suit charges that Sloat Higgins Jensen and Associates tapped its roster of Fortune 500 clients to steer hundreds of thousands of dollars in checks to favored politicians — although the document fails to name any."
"According to the court papers, company founder Kevin Sloat, who was once an aide to former Gov. Pete Wilson, also improperly gave gifts to legislators, instructing that no written record of them be kept."
"Legislative lobbyists are barred by California law from donating to lawmakers or candidates for the Legislature, and from directing such contributions. The state also prohibits lobbyists from making, arranging or delivering gifts worth more than $10 to an elected state official in a single month."
California's first-in-the-nation law aimed at protecting the rights of transgender students is poised to take effect -- even as foes plan to take it to the statewide ballot.
From the AP's Julie Watson and Lisa Leff: "With a law that spells out the rights of transgender students in grades K-12 set to take effect in California, school districts are reviewing locker room layouts, scheduling sensitivity training for coaches, assessing who will sleep where during overnight field trips and reconsidering senior portrait dress codes."
"But administrators, counselors, teachers and school board members also are watching and waiting. The law, the nation's first requiring public schools to let children use sex-segregated facilities and participate in the gender-specific activities of their choice, could end up suspended within days of its Jan. 1 launch if a referendum to repeal it qualifies for the November ballot."
California has a booming marijuana economy, but weed advocates are pausing in their efforts to push for greater legalization because of concerns over the state's political landscape and federal actions.
From the Bee's Peter Hecht: "Yet in the home of America’s largest marijuana economy, advocates remain hesitant about moving forward – and putting the necessary money on the line – to qualify a California pot legalization vote next year. They remain uncertain over the state’s political climate and are frustrated by failure of lawmakers to set rules governing California’s medical marijuana trade, once estimated at $1.5 billion, in the face of federal raids on cannabis businesses."
"Some advocates want California to have a regulatory scheme in place for the marijuana market before moving forward, while others argue that 2016 will present a more favorable voting poll for broader legalization."
For those who like Bitcoin, a cyptocurrency that is gaining a certain popularity, they can use it to make campaign donations to a Newport Beach city council candidate, Michael Glenn.
From the LAT's Emily Foxhall: "Glenn claims to be the first local politician to accept campaign donations in the esoteric digital currency. He is seeking the Balboa Peninsula's 1st District council seat being vacated by Mike Henn. Also in the race are businesswoman Diane Dixon and Harbor Commissioner Joe Stapleton."
"Glenn's announcement comes weeks after individuals used bitcoins to pay for a Tesla car, and then a Lamborghini, from a Costa Mesa dealership."
