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 California Official Voter Information Guide  Primary Election Date - Tuesday March 5, 2002
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PROP
46
 Housing and Emergency Shelter Trust Fund Act of 2002.
   PROP 46
   Official Title and Summary
   Analysis
   Arguments and Rebuttals
  Text of Proposed Law
   PROP 47
   PROP 48
   PROP 49
   PROP 50
   PROP 51
   PROP 52
ARGUMENT in Favor
of Proposition 46


YES on Proposition 46 will provide emergency shelters for battered women, affordable housing for seniors and low-income families, and shelters with social services for the homeless. That is why the Congress of California Seniors, the League of Women Voters of California, and the Association to Aid Victims of Domestic Violence strongly urge a YES vote on Proposition 46.

Importantly, this bond measure will be funded out of existing state resources without raising taxes.

In our communities, the problems of housing affordability, homelessness, and domestic violence have gotten progressively worse. According to the State Department of Housing, over 360,000 Californians are homeless and the numbers are rising.

Last year, 23,000 women and children were turned away from domestic violence shelters because they were full. Housing affordability for working families in California is at historic lows.

Safe shelter is fundamental to a decent life. YES on Proposition 46 will:
  • Double the number of emergency shelter beds.
  • Expand the number of shelter beds for battered women.
  • Provide security improvements and repairs to existing shelters.
  • Provide clean and safe housing for senior citizens and low-income families.

Additionally, Proposition 46 provides affordable housing for working people, accessibility improvements to apartments for disabled Californians, and loan assistance for military veterans, teachers, police and firefighters.

Proposition 46 also creates 276,000 jobs and helps improve the state's economy.

Allows Seniors to Live Independently: "This measure allows seniors to live in an apartment or home without the fear of being institutionalized in a nursing home. We strongly urge a YES on 46."—Congress of California Seniors

Helps Battered Women: "Most cities in California don't have adequate shelters for women and children who have been beaten and abused. Proposition 46 begins to fix this bad situation."—Statewide California Coalition for Battered Women and California State Sheriffs Association

Keeps Kids in School: "Proposition 46 provides shelter for thousands of homeless children, allowing them to attend neighborhood schools without having to worry about a roof over their head."—California Teachers Association

Independent Audits and Accountability:
"This measure requires independent audits and contains strict accountability provisions to ensure the funds are used as promised. Every city and county will be eligible to receive housing funds."—California Chamber of Commerce

Loan Assistance for Veterans: "Our veterans have protected American interests at home and around the world. This measure makes available low-interest loans so they can purchase their first home."—Vietnam Veterans of California, Inc.

Critical Need For Housing and Emergency Shelters: "Proposition 46 provides shelter for those who need help the most—battered women, homeless mothers with children and disabled seniors."—Habitat For Humanity, Orange County

Yes on 46 provides emergency shelter and housing relief without raising taxes. It will help the 23,000 women and children turned away from domestic violence centers because they were full. It requires independent audits to ensure the funds are spent correctly. We urge you to vote YES on Proposition 46. Visit our website prop46yes.org.

PETE MAJOR, Executive Director
Habitat For Humanity, Orange County

BARBARA INATSUGU, President
League of Women Voters of California
DR. KATHIE MATHIS, Executive Director
Association to Aid Victims of Domestic Violence

ARGUMENT Against
Proposition 46


What do families, major corporations and governments have in common? They all collapse when they have too much debt. California is already on the brink of bankruptcy and now is not the time to be going further into debt.

Passing bonds only adds to the state's debts. Here is a snapshot of California's current situation:
  • A $24 billion budget deficit this year.
  • $26.9 billion in current general obligation bonds outstanding.
  • $11 billion in energy bonds that have yet to be sold.
  • A $13 billion school bond on this ballot.
In the past two years, California has borrowed or approved more than $12.9 billion in 27 different bonds. Paying it back, however, will cost you a whole lot more.

Bonds are the government's equivalent of a high-interest credit card. Government borrows money and then taxpayers pay back that debt, meaning increased taxes, rates and fees. Even worse, your children will be paying off this bond long after the money has been spent.

With every pile of debt California takes on, our credit rating drops, and our interest rates go up—forcing you to pay even more for government's mistakes and whims.

So why is this particular housing bond not a good idea?

Unfortunately it does little to truly address housing issues in California.

This bond has a $2.1 billion face value. It will cost you at least $3.5 billion to pay it off. Of this $2.1 billion, only $290 million, about 15%, is put into the "Self-Help" fund that is supposed to help low-income, first-time homebuyers with down payments, supposedly a major selling point for this bond. Of that, only $12.5 million is actually going to be used to help with down payments. To make matters worse, to get a part of the $12.5 million (one half of one percent of the bond) first-time homebuyers have to purchase their houses in government approved locations. None of these areas are the high-income areas where it is so hard to purchase a home. This program only applies to major urban centers and many of the least desirable places to live and raise children. So— the very small piece of this bond that is supposed to help you buy a house has so many strings that you will probably never qualify.

If we want to improve housing availability in California, we first need to make it easier to construct new homes. We need to reduce the red tape that homebuilders have to go through to build new housing and make it easier to build condominiums. This bond does NOTHING to address the barriers that exist to providing affordable, abundant housing in California.

Sacramento politicians hope you will overlook their fiscal mismanagement and allow California to go further into debt without forcing them to confront the true reasons we do not have adequate housing. Do not allow this. Vote no and force Sacramento to set priorities and address this crisis in a responsible way.

SENATOR RAY HAYNES, Chair
State Senate Constitutional Amendments Committee
ASSEMBLYMAN ANTHONY PESCETTI, Vice-Chair
Assembly Utilities and Commerce Committee
JON COUPAL, President
Howard Jarvis Taxpayers Association



REBUTTAL to Argument in Favor
of Proposition 46

Supporters say the interest—hundreds of millions of dollars annually—for this bond can be paid out of existing resources. WHAT EXISTING RESOURCES? California faces multi-billion dollar deficits as far as the eye can see. The reality is, we are going to have to cut programs or raise taxes, or both, to pay back this bond.

Supporters claim this bond will support battered women's shelters. But there is NO GUARANTEE that passing this bond will provide ONE SINGLE BED for a battered woman or her child. There's no mention of battered women's shelters in this bond, IT IS SIMPLY A POLITICAL PLOY. Those shelters will have to compete with everyone else in the same bureaucratic process!

Supporters also say this bond will help provide affordable housing. But areas with the most critical housing shortages in our state—places like suburbs of Los Angeles, San Diego, and the Bay Area— won't qualify for these monies because the bond written to favor urban downtowns.

Proposition 46 is a classic government boondoggle. Higher fees, taxes, and strict regulations have made housing unaffordable in California. Now the same folks who created the problem want you to let them "solve" it, using YOUR TAX DOLLARS!

It is time for us to attack the real problem, not just subsidize a failing, costly system.

Proposition 46 is no solution. We encourage you vote NO.

MARILEE MONAGAN, Past Board Member
Women Escaping a Violent Environment (WEAVE)
LEW UHLER, President
National Tax Limitation Committee
REBUTTAL to Argument Against
Proposition 46


Our opponents want you to believe that the solution to our emergency shelter and affordable housing problem for seniors, low-income families and battered women is to ignore the problem while the cost and consequences get even more severe.

Let's set the record straight: Proposition 46 will NOT require a tax increase and will be paid for by existing state funds. Additionally, taxpayers are protected by independent audits to ensure that the programs are carried out as promised.

The emergency shelter and affordable housing problems are getting worse.

"Last year, 23,000 women and children were turned away from domestic violence centers due to inadequate space. More and more senior citizens are homeless or forced into nursing homes, because they cannot afford rent increases. Our homeless shelters are overflowing and most don't have special facilities for families with children."—Dallas Jones, Director, California Office of Emergency Services

We represent a broad cross section of Californians who believe that Proposition 46 is a prudent and measured response to an emergency shelter and affordable housing situation that is in crisis.

That is why Proposition 46 is endorsed by these diverse groups:
  • AARP
  • California State Sheriffs Association
  • California Chamber of Commerce
  • League of Women Voters of California
  • Statewide California Coalition for Battered Women
  • California Nurses Association
  • California Teachers Association
  • California Professional Firefighters
  • Congress of California Seniors
Proposition 46 provides shelter for our most vulnerable Californians: the elderly, disabled, homeless families, battered women and children. Please vote YES on 46.

TOM PORTER, State Director
AARP
PETE MAJOR, Executive Director
Habitat For Humanity, Orange County
DAN TERRY, President
California Professional Firefighters

Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency.
Copyright © 2002 California Secretary of State