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| Prison Budget Cuts Hurting New Jail Plans |
| By recordnet.com |
| Published: 08/09/2010 |
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SAN ANDREAS - State government has promised to chip in $26 million for a new jail in Calaveras County and $80 million for a jail expansion in San Joaquin County. So what could go wrong? Well, for one thing, state budget cuts to the prison system. The state plans to come up with money for projects authorized under AB900, a law passed in 2008, by selling lease revenue bonds. Unlike traditional lease revenue bonds where the property financed is a money maker, the "lease" in this case involves a rent payment of tax dollars from one state agency to another. The State Department of Corrections and Rehabilitation is supposed to pay rent to the State Public Works Board for use of the jail facilities. If it doesn't, the Public Works Board is obligated to find someone else to pay the rent. In the event of a state default on particular bonds, the county that built the jail would be given the first opportunity to pay the rent. If the county government couldn't or wouldn't pay it, then it would face the prospect of having a building in the middle of its law enforcement complex leased to some other entity, possibly a private company in the prison business. The lease-revenue arrangement, and its potential pitfalls, have come as news to some county officials. Read More. |
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