OFFICIAL TITLE AND SUMMARY
Prepared by the Attorney General

Proposition 57

THE ECONOMIC RECOVERY BOND ACT.

• A one time Economic Recovery Bond of up to fifteen billion dollars ($15,000,000,000) to pay off the state's accumulated General Fund deficit as of June 30, 2004.
• The Economic Recovery Bond will only be issued if the California Balanced Budget Act is also approved by the voters.
• The bonds will be secured by existing tax revenues and by other revenues that could be deposited in a special fund.

Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact:

• One-time increase, compared to a previously authorized bond, of up to $4 billion to reduce the state's budget shortfall.
• Annual debt-service savings over the next few years.
• Above effects offset in subsequent years by higher annual debt-service costs due to this bond's larger size and the longer time period for its repayment.

Final Votes Cast by the Legislature on ABX5 9 (Proposition 57)