Ballot Measure Summary

Proposition 55

Proposition 56

Proposition 57

Proposition 58

Kindergarten-University Public Education Facilities Bond Act of 2004.

Bond Act
Put on the Ballot by the Legislature

Summary

This twelve billion three hundred million dollar ($12,300,000,000) bond issue will provide funding for necessary education facilities to relieve overcrowding and to repair older schools. Funds will be targeted to areas of the greatest need and must be spent according to strict accountability measures. Funds will also be used to upgrade and build new classrooms in the California Community Colleges, the California State University, and the University of California, to provide adequate higher education facilities to accommodate the growing student enrollment. These bonds may be used only for eligible projects. Fiscal Impact: State costs of about $24.7 billion to pay off both the principal ($12.3 billion) and interest ($12.4 billion) costs on the bonds. Payments of about $823 million per year.

What Your Vote Means

Yes
A Yes vote on this measure means: The state could sell $12.3 billion in general obligation bonds for the construction and renovation of public education facilities (kindergarten through college).

No
A NO vote on this measure means: The state could not sell $12.3 billion in general obligation bonds for these purposes.

Arguments

Pro
Provide kids with clean, safe classrooms to improve student learning. Prop. 55 will FIX RUNDOWN CLASSROOMS and BUILD NEW SCHOOLS. STRICT ACCOUNTABILITY and AUDITS guard against waste and mismanagement. California Teachers Association, California Taxpayers' Association, State PTA, California Chamber of Commerce: "Invest in kids and their future. Yes on 55."

Con
California faces the worst financial crisis in its history. We need new schools, not more debt for taxpayers. Proposition 55 is fundamentally flawed, poorly drafted, and grossly unfair. It favors Los Angeles Unified School District at the expense of the rest of the state and it will raise our taxes.

For Additional Information

For
Yes on 55 - Californians for Accountability and Better Schools
1121 L Street, Suite 803
Sacramento, CA 95814
888-563-0055
information@yeson55.com
www.Yeson55.com

Against
Thomas N. Hudson,
Executive Director
California Taxpayer Protection Committee
9971 Baseline Road
Elverta, CA 95626-9411
916-991-9300
Fax: 209-254-5466 taxfighters@yahoo.com www.ProtectTaxpayers.com

State Budget, Related Taxes, and Reserve. Voting Requirements. Penalties. Initiative Constitutional Amendment and Statute.

Put on the Ballot by Petition Signatures

Summary

Permits enactment of budget and budget-related tax/appropriation bills with 55% vote. Legislature, Governor forfeit compensation each day budget is late. Fiscal Impact: Varying impacts from lowering the vote requirement for budget-related measures — including changes in spending and potentially significant increases in state tax revenues in some years. Impacts would depend on the composition and actions of future Legislatures.

What Your Vote Means

Yes
A YES vote on this measure means: The Legislature could pass the state budget and tax increase measures related to the budget by a 55 percent vote. Other changes to the budget process would be made.

No
A NO vote on this measure means: The state budget and tax increase measures would continue to require a two-thirds vote for passage. The budget process would remain the same.

Arguments

Pro
Proposition 56 is real budget reform. It holds legislators accountable by withholding their pay when the budget is late, informing voters of how their money is spent, lowering the threshold to pass a budget from 2/3 to 55%, and requiring a real "rainy day" fund to help balance the budget.

For Additional Information

The Economic Recovery Bond Act.

Bond Act
Put on the Ballot by the Legislature

Summary

One time bond of up to fifteen billion dollars ($15,000,000,000) to retire deficit. Fiscal Impact: One-time increase, compared to previously authorized bond, of up to $4 billion to reduce the state's budget shortfall and annual debt-service savings over the next few years. These effects would be offset by higher annual debt-service costs in subsequent years due to this bond's longer term and larger size.

What Your Vote Means

Yes
A YES vote on this measure means: The state would sell $15 billion in bonds to pay existing budgetary obligations.

No
A NO vote on this measure means: The state would not sell $15 billion in bonds, but could instead sell bonds previously authorized by the Legislature to pay a smaller level of existing budgetary obligations.

Arguments

Pro
For three years, state government spending has exceeded revenues, creating a deficit. This measure will consolidate the deficit and allow California to get its finances in order—without raising taxes. Proposition 57 will keep the state from running out of money and prevent drastic cuts in education and health care.

Con
Proposition 57 doesn't end our deficit. It postpones and then increases it. It plunges us $15 billion deeper in debt—plus billions more in interest—costing more than $2,000 per family. The recall told Sacramento: NO NEW TAXES. NO on 57 will tell them: STOP BORROWING AND OVERSPENDING.

For Additional Information

For
Tom Hiltachk
Join Arnold
455 Capitol Mall, Suite 801
Sacramento, CA 95814
916-442-7757
info@joinarnold.com
www.joinarnold.com

The California Balanced Budget Act.

Legislative Constitutional Amendment
Put on the Ballot by the Legislature

Summary

Requires the enactment of a balanced budget, addresses fiscal emergencies, and establishes a budget reserve. Fiscal Impact: Net state fiscal effects unknown and will vary by year, depending in part on actions of future legislatures. Reserve provisions may smooth state spending, with reductions during economic expansions and increases during downturns. Provisions requiring balanced budgets and limiting deficit borrowing could result in more immediate actions to correct budgetary shortfalls.

What Your Vote Means

A YES vote on this measure means: The State Constitution would be amended to provide for: (1) the enactment of a balanced state budget, (2) state budget reserve requirements, and (3) limits on future borrowing to finance state budget deficits.

No
A NO vote on this measure means: The State Constitution would not be amended to add new requirements on state budgetary practices.

Arguments

Proposition 58 will require the Governor and the Legislature to enact a balanced budget. It will require that spending not exceed income each fiscal year and will require building at least an $8 billion reserve. It will prohibit borrowing in the future to pay off deficits.

With the $15 billion bonds, we were SUPPOSED to get a strong spending limitation measure. But Prop 58 DOES NOT LIMIT SPENDING! It allows short-term borrowing to balance the budget, the budget reserve is largely unprotected, and the door is wide open for massive spending increases and higher taxes.

For Additional Information