s) and in prison yards. No new funding was authorized for new prisons or for emergency housing in 1994. In addition, no general obligation bond measure for prison construction or renovation was placed on the 1994 ballots. Currently, there is less than $10 million available from past prison bond measures for appropriation by the Legislature. The state's new prisons have been almost entirely funded by either general obligation or lease-payment bonds. Barring a special election, the earliest that voters could authorize additional general obligation bonds for prisons would be at the March 1996 statewide election. Funding with lease-payment bonds does not require voter approval and thus could be authorized at any time with a majority vote of the Legislature and approval by the Governor. For several reasons, lease-payment bonds are more costly than general obligation bonds. We estimate that General Fund debt service for lease-payment bonds is about 15 to 20 percent higher over the life of the bonds. Other than bonds, there are currently few practical options for financing prison construction. Direct appropriations, either from the General Fund or from the Special Account for Capital Outlay (SAFCO), have been minimal in recent years. In view of the near-term outlook for these funding sources, outlays of the magnitude needed to construct new prisons is highly unlikely. The recently enacted federal crime bill, however, should provide funds to California to assist in part of this construction. As we note in our report, The Federal Crime Bill: What Will it Mean for California?, the state's potential share of federal prison construction grants over the next six years could be about $1.2 billion based on authorized funding levels specified in the federal legislation. The actual amount the state receives will depend on annual appropriations by the Congress. The initial grant will not be available before October 1995. In addition, the state would be r...
