California to spend $20 billion on road and school construction

California Gov. Gray Davis hopes to boost his state’s economy by launching the “Build California” plan, which allocates approximately $20 billion of bond money to road and school construction.

The plan is expected to add 500,000 new jobs in the state during the next four years. A $5.5 billion “Our New School” bond will help build 1,000 new schools, modernize 1,400 schools and create 135,000 new jobs.

“The first goal of my administration will be creating new jobs and improving California’s economy,” Davis said. “Every dream begins with a job. And now every job elevates our economy.”

California experienced a slump in its economy with the high tech/dot-com bust. The state estimates a gap of $35 billion over the next year and a half between expected revenue and planned expenditures. Davis said he expects the use of the bond money, along with government cuts, to lessen the gap and help bring back the economy.

Other parts of Davis’ plan for economic growth include making the state more small-business friendly. He announced the building plan during his inaugural speech Jan. 6.