SACRAMENTO – Governor Schwarzenegger today signed a bill by Assemblymember John Laird (D-Santa Cruz) that authorizes the state to share half of the local costs of the Pajaro River levee improvement project.

“With 50,000 people living in Watsonville and Pajaro behind levees that provide only 8-year flood protection, I’m thrilled the governor has given the state the green light to help strengthen these levees,” said Assemblymember Laird.

Under federal law, the federal government will pay for about $150 million of the costs of the $200 million project, which will be undertaken by the Army Corps of Engineers. Without AB 2348, the remaining costs would have to be paid by local agencies and landowners. AB 2348 provides that the state will pay for half of the remaining costs.

“Without the funding assistance provided by the bill, it would be very difficult to come up with the local share for the project,” said Thomas Bolich, director of the Santa Cruz County Public Works Department. “We’re excited about the possibility of finally moving forward with this flood control project, especially in light of the high level of collaboration between the counties along the Pajaro and with the environmental community.”

Bill Overview

Federal cost-sharing rules call for the federal government to carry 75% of the project cost and local agencies to carry 25%. Following passage and signing of the bill, the two required next steps include 1) the Corps and local agencies agreeing on the project design, and 2) local agencies will have to come up with the local share.

Levee Background

In 1944, the Congress authorized the construction of the Pajaro River levee system. These are the levees that currently protect Watsonville, Pajaro and nearby expanses of farmland.

In 1966, the Congress authorized an enlarged levee system. The project was delayed because of disagreements on the project design.

Based on the 1966 authorization, the federal Corps of Engineers will be proposing the enlarged levee project. The Corps is expected to release an EIR/EIS this winter.