AgdaPkt 2009-11-09 - Laserfiche WebLink

Browse Search

8A Page 7 Bottle Bill Program Gets Major Cuts The Department of Conservation (DOC) announced on Monday, Oct. 19, that it Is eliminating funding for programs under Beverage Container Recycling Program, also known as the Bottle Bill program. The program cuts will be effective Nov.1. Earlier this week, DOC held a stakeholder meeting to outline the cuts affecting recycling programs throughout the state. DOC's announcement has additional information. (www.conservation.ca.aov/dor/Notices/Paaes/PRPN.asDx) Local governments will be affected by the elimination of funds paid to cities and counties to support recycling programs, payments to solid waste haulers to supplement curbside recycling and to convenience zone recyclers known as "handling fees."The base California Redemption Value payment for redeemed containers will not be affected by the cuts. In July, DOC announced that the Bottle Bill program had a significant deficit and instituted an 85 percent cut to many of the programs paid by the Beverage Container Fund. The fund's shortfall is largely due to the state's borrowing of more than $270 million from the Beverage Container Recycling Fund over the last two years. The borrowed funds have been used by the Department of Finance to help close the massive gaps in the state's General Fund. in response to the Bottle Bill program deficit. several bills were introduced in the Legislature with the final legislation coming in the form of SB 402 (Wolk). This bill expanded the Bottle Bill program to include new types of containers and financially stabilized it. Gov. Arnold Schwarzenegger vetoed SB 402 in early October. stating that the bill did not contain the solutions for long-term repair of the Fund. The League actively supported SB 402 and is working with the stakeholders to continue to find solutions to keep recycling in California. Federal Government Announces New Initiative to Assist Housing Finance Authorities The Obama Administration announced a new initiative this week to further the goals of the President's Homeowner Affordability and Stablllty Plan approved in February. The initiative was designed to mitigate the risk to taxpayers and will support state and local housing finance authorities (HFAs) through two new programs. . The Temporary New Issue Bond Program will provide short-term financing to HFAs to issue new bonds to fund new mortgages. The U.S. Treasury will purchase securities of government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. These securities will be underwritten by the new housing bonds. The Administration estimates that this program may support up to "several hundred thousand new mortgages to first- time homebuyers In 2010." The bonds will also fund refinancing opportunities to enable borrowers to transfer into sustainable mortgages. Funds will be allocated to state and local authorities in the same manner as funds were allocated under the Housing and Economic Recovery Act of 2008. . The Temporary Credit and liquidity Program will help stabilize the housing market by issuing temporary credit to HFAs through Fannie Mae and Freddie Mac. The U.S. Treasury will "backstop" this credit by purchasing a participation interest In the GSEs. The HFAs face financial pressures and their existence is threatened. This program will enable the authorities to continue their core mission: aid new homebuyers as well as construct and preserve affordable housing units for working families. To participate in both programs, state and local HFAs will have to develop a plan that demonstrates the desired level of participation. This requirement will ensure that the programs meet only the anticipated demand. If demand is higher than expected, the programs will be capped. 7