Governor Schwarzenegger acknowledged the high price tag of the recently passed water bond, but defended it as a critical investment in the state's archaic water infrastructure.  While voters will make the final decision on next year's ballot, Schwarzenegger is already working hard to shore up popular support.  According to the Governor, state borrowing will be staggered to ease the debt load and will enable the state to leverage up to $30 billion in additional federal funds.  In addition, he would like to see a new round of cuts to stave off another budget crisis brought on by too much borrowing and spending.  Critics claim the $11.1 billion bond will only add more crippling debt, negatively impact Northern California's water supply, and adversely affect the Delta residents who oppose construction of a large, peripheral canal.

The Governor and Legislature may face an uphill battle in convincing voters to approve the gargantuan infrastructure project.  If state unemployment is hovering around 13% and another punishing budget deficit ensues next year, voters may not be inclined to approve an $11.1 billion bond that will exacerbate the deficit and pile on more debt.  Even if the infrastructure bond is badly needed, the economic reality would seem to demand a balanced budget or a budget surplus before embarking on such a costly, multi-year state project.