SACRAMENTO -- A state government hiring freeze designed to stem the flow of deficit spending actually is preventing voter-approved bond money from going to the programs for which it was intended, experts told a legislative panel Wednesday.

It was unclear exactly how much money remains unspent because of staffing shortfalls, but members of an Assembly budget subcommittee were chagrined by the irony that the state seemed too poor even to use its windfall of borrowed billions.

"The people in the state of California generously have voted for bonds, because they expect to see projects happen," said Assemblywoman Lois Wolk, D-Davis. "They expect the money to be put to use as soon as possible, and we need to do that."

But according to administration officials and the nonpartisan Legislative Analyst's Office, at least $20 million intended for agriculture and water projects probably won't be processed in time to help the farm community this year. And many millions, if not billions, more could be delayed to one degree or another.

Local agencies rely on a broad range of government grant money, much of it financed by bond sales. Stockton East Water District, for example, is in line for a piece of $3.4 billion granted by voters in 2002's Proposition 50.

"We'll qualify for bonding under Proposition 50, but they haven't even started the application process," said Kevin Kauffman, general manager of Stockton East. "We're trying to find out how long it's going to take." ::: Advertisement :::

Lawmakers on the budget panel Wednesday were alarmed by reports that normal delays could be extended indefinitely because some agencies simply don't have enough workers.

Experts told the panel that new programs for which rules and standards have to be written were the hardest hit.

But Elaine Berghausen, deputy assistant secretary for bonds and grants in the state Resources Agency, told lawmakers, "The (hiring) freeze has slowed some ongoing programs."

"We can't seem to get through the administrative logjam," said Assemblyman Dave Cogdill,
R-Modesto. "This hiring freeze we put on, ... it's broken down. It's just not making any sense economically. We have this money that people have approved, and we can't get it out the door."

H.D. Palmer, a spokesman for the governor's Finance Department, said the administration is still assessing the effects of staffing cuts ordered during the waning days of the Davis administration.

Mark Newton, director of resources and environmental protection for the Legislative Analyst's Office, said it's difficult to determine exactly which bonds have been delayed. But he said it's clear the problem is real.

Newton said tens of millions of dollars have come to a complete standstill.

But he said it's hard to pinpoint how staffing levels are affecting the movement of bond money already in the distribution pipeline.

"It certainly is an issue that a lot of people are monitoring," Newton said.