California: Economic crisis slams 1,100 eco-restoration groups
Facing a cash crunch, state officials notified 1,100 groups last month
that they were losing $647 million in environmental grants that were
tied to bond funds issued under voter-approved propositions. Now most
of the groups can’t meet deadlines to apply for matching funds, pay
contractors or fulfill obligations under purchase agreements. Many of
them are laying off staff and shutting down work. “We’re very
disturbed. There are projects all over the state that could be
building parks, improving people’s quality of life and providing
jobs,” said Elizabeth Goldstein, president of the California State
Parks Foundation.
Goldstein, who worked to win funds to restore
Yosemite Slough on Candlestick Point in San Francisco’s Hunters Point,
had to tell plan designers to stop work – which could delay cleanup
and restoration of the 34-acre site for bayside wildlife habitat and
public access. The California Coastal Conservancy, the Wildlife
Conservation Board and other agencies that dole out bond money
instructed land trusts, cities, resource agencies and small nonprofits
to suspend all work paid from bond sales as of Dec. 17. Projects are
expected to be halted at least until the state passes a budget and
improves its financial standing enough that investors will consider
California bonds a solid investment. Today, the State Pooled Money
Investment Board, which includes the state’s treasurer, controller and
finance director, will meet to consider whether to ease the freeze on
financing for schools, roads, levees, environmental protection,
veterans homes and others. The staff has recommended releasing $500
million until the end of the fiscal year in June.
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/01/16/MNU415B8TA.DTL
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