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State secures funds for Back Bay dredging

May 17, 2001

Paul Clinton

NEWPORT-MESA -- Gov. Gray Davis slashed $3.18 billion in spending from

the state budget Tuesday, but projects in Newport Beach and Costa Mesa

are not expected to be affected.

Davis, in his revision of a 2001-02 budget first released in January,

didn't cut funding for a major dredging project in Upper Newport Bay that

is scheduled to begin after 2003.

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State and local officials representing Newport Beach have tentatively

secured $13 million of park bond money to help fund the project.

The 2001-02 state budget includes $7.52 million for the project from

the $1.25 billion available via Proposition 12, approved by voters in

March 2000.

"We're optimistic that since it's in the governor's budget now, it'll

stay there," said Dave Kiff, Newport Beach's assistant city manager.

"It's bond money."

Bond funding is usually on more solid footing than money from the

general fund -- which absorbed all the cuts -- because it is earmarked

for specific projects.

But state belt-tightening has jeopardized other pots of money city

officials had hoped to tap.

One of those is a reduction from $100 million to $10 million in Davis'

plan to fund projects that reduce beach closures.

"Like many of the one-time projects, it was reduced," said Hilary

McLean, a spokeswoman for the governor. "This is part of a federal effort

toward a balanced budget due to the fact that the economy has slowed

down."

Kiff said Newport Beach hopes to secure a portion of the beach-closure

money to fund projects that would remedy the growing problem in the city

of beach closures and postings resulting from sewage spills into Upper

Newport Bay and the harbor.

The budget cutbacks also aren't expected to hamper the city's effort

to buy land from the state's Department of Transportation for a park at

Coast Highway and Superior Avenue.

State Sen. Ross Johnson (R-Irvine) has floated a bill that would

transfer the land to the city at the reduced price of $1.13 million.

Caltrans wants a market rate, about $4 million.

The stalemate, expected to be resolved later this month, is more a

result of a difference of opinion on the land's value, Kiff said.

"They don't want to take the write-down," Kiff said. "If this bill

doesn't pass this year, we're back to our stalemate. We can't go any

higher."

The city has earmarked an additional $5 million to develop a park at

the area, known as Sunset Ridge.

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