USC Keston Institute Hosts California Bond Forum under Halo of State Legislature`s Historic Action on Water Issues

California`s Infrastructure Policy and Public Finance Experts Meet with State
Agency Officials to Assess $42 Billion GO Bond Measure, Anticipate $11 Billion
Water Measure Up for Voters Next Year
LOS ANGELES--(Business Wire)--
The Keston Institute for Public Finance and Infrastructure Policy at the
University of Southern California hosted its fourth forum in the series,
"Assessing Performance and Progress of California`s 2006 Infrastructure Bonds,"
in the wake of the California State Legislature`s historic passage this morning
of a comprehensive water package that would aggressively address the Golden
State`s highly-politicized, complex water issues.

"The news from Sacramento this morning about the state legislature`s agreement
on a comprehensive water package is a solid attempt to address the linked issues
of water infrastructure and ecosystems enhancement," said Richard Little,
director of the Keston Institute, in addressing the forum. "As the funding of
these improvements will be decided upon by voters in November, its vitally
important that the public is provided with free and open forums and assessments
of bond measures like the Keston Institute offered today," continued Little.

The group reviewed the status of projects three years after California voters
overwhelmingly approved over $42 billion in general obligation bonds to fund
transportation, flood protection, school construction, housing, and water supply
protection.

The group of panelists joining Little included John Decker, executive director
of the California Debt and Investment Advisory Commission; Bimla Rhinehart,
executive director of the California Transportation Commission; Lynn Jacobs,
director of the California Department of Housing and Community Development; Ron
Gastelum, former general manager of the Metropolitan Water District of Southern
California; and Carole D`Elia, deputy executive director of the Little Hoover
Commission. Nicole Bullock, capital markets reporter for Financial Times,
moderated the forum.

The majority of the panelists provided updates on how much of the allocated bond
money has made it into existing projects, as well as perspective on how the
state`s budget crises and credit market difficulties in the past year have
impacted the progression of projects approved under the 2006 measure.

"The future of transportation in the state appears to be all gloom and doom,"
said Rhinehart. "Projects are only funded on a cash flow basis and dependent
upon bond revenue. All other `pots` of funding are at risk, creating a delicate
balancing act under a cloud off uncertainties, all of which make it difficult to
proceed," continued Rinehart.

Many of panelists echoed Rhinehart`s frustrations, suggesting that "California
voters want it all but just don`t want to pay for it all." A result of this,
they advised, is that state agencies and organizations need to find long-term,
sustainable sources of funding "without continuing to use the state bond system
as a credit card."

The results of the budget stalemate from last year will create some breathing
room to address long-term issues, suggested Decker. Elaborating on his
prediction, Decker said that "there will be big opportunities to bridge
difficult divides and make better decisions over long term" due to an election
year, as the legislature and governor will be "well incentivized to get
constructive things done and correct problems."

About The Keston Institute

The Keston Institute for Public Finance and Infrastructure Policy at the
University of Southern California is a non-partisan research center that
actively addresses California and the nation`s public finance and infrastructure
challenges. It is specifically focused on regional and national transportation
and water issues and promoting economic viability, livability and environmental
sustainability.

Together with the Keston Institute, the USC School of Policy, Planning and
Development has created the only educational and policy degree track in the
field of civil infrastructure, with the goal of making USC a world leader in
infrastructure and policy development.

The Institute`s ongoing research is exclusively focused on analyzing core
infrastructure challenges facing California and the nation, while presenting
realistic, objective recommendations to voters and policymakers. For more
information about The Keston Institute, please visit http://www.usc.edu/keston.

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