Infrastructure spending needs strong oversight

0 Comments | Oakland Tribune, Mar 6, 2007

VOTERS back in November made it clear that California's infrastructure needs fixing. In fact, voters backed $42.7 billion worth of public works bonds in the election.

Plans are under way to assign how these bonds should be used. Yet how many times in the past has public works money been wasted? The San Francisco-Oakland Bay Bridge reconstruction -- a project with $5 billion in cost overruns -- is an example.

Bill Lockyer, the state's new attorney general, and John Chiang, the new state controller, say they have put public works at the top of their to-do list. They are urging the creation of a new state watchdog agency to ensure that the public gets "its money's worth."

The Citizens' Bond Oversight Commission, which would work closely with the state auditor, would be designed to provide independent analysis of how decisions are made with public works money and how well they are implemented. The commission would not duplicate the efforts of existing entities, meaning decisions dating back before the implementation of the commission would stand.

Lockyer and Chiang said that under current rules, oversight of the new infrastructure bonds -- everything from roads to housing -- will fall short. Apparently, this was a ball fumbled by Chiang's predecessor, Steve Westly.

Back in December 2005, Westly called for an oversight commission to ensure accountability for infrastructure bonds, a commission that would have final say toward directing funds and monitor projects. But where did it end up?

The commission that Lockyer and Chiang are pitching would be able to investigate and hold public hearings, but little else. Beyond being some sort of whistleblower for the state auditor's office, we wonder how many teeth this commission would have.

There's a lot of money at stake here and we need more than commissions to give analysis and recommendations. We need someone -- are you listening, Mr. Chiang? -- and a commission with the state Legislature's blessing to ensure projects are completed properly, on time and within the budget of the given project.

We understand there are circumstances that might call for overruns. Guidelines must be created to determine when this sort of occurrence is acceptable. If it doesn't fall under those guidelines, the builder should face a penalty for waste, perhaps the loss of bond money or a severe fine. What is needed is a tough deterrent so contractors think twice about wasting our time and our money.

The commission proposed by Lockyer and Chiang is probably a good step, but not the ultimate solution. We need a state body with strength that makes sure California's interest comes first.