Propositions 1B-1E & Bond measures 22 Oct 2006 11:51 am
Bond measures could cost state $2.45 billion a year
According to an article in today’s Sacramento Bee, most likely voters don’t know that the four major infrastructure bond measures (Propositions 1B-1E) are on the ballot, and when they find out about them and how much they are projected to cost, they are less likely to support passing them. This pattern is confirmed by polling data from the Public Policy Institute of California.
The article notes, “If voters approve the separate measures on transportation, education, flood protection and housing, it’s going to cost an average of $2.45 billion a year for the next three decades — a little more than the state now pays annually for in-home support services for the poor, all of its public health programs and the entire budget of the Labor and Workforce Development Agency.” The article goes on to note that the state already has $45 billion in outstanding bond debt, with yet another $45 billion waiting to be sold and financed, including $10 billion in bonds approved by voters in the 2004 election.
The state’s debt service ratio (the amount of the general fund that the state uses to retire bond debt) will increase from 4.2% to 4.8% by 2008-2009 if the bond measures on this year’s ballot pass.