California Proposition Watcher: bond

Bond Measure

Prop. 1 asks voters to approve the issuance of $9.95 billion of general obligation bonds.
This would partially fund a $40 billion, 800-mile high speed train under the supervision of the California High-Speed Rail Authority.
The train would run between San Francisco and Los Angeles, with Anaheim, California, designated as the southern terminus of the initial segment of the high-speed train system.
Estimates are that the train system would be completed in 2030, and that it would take passengers between San Francisco and Los Angeles in about 2 hours and 40 minutes.

POSSIBLE DELAY

The California State Assembly approved AB 3034 on May 30 by a vote of 60-3. The goal of AB 3034 is to "make the rules for spending the bond money more flexible if voters sign off on the bonds in November."[1] The Senate Appropriations Committee is considering the bill.
AB 3034 has to be signed no later than midnight on July 15 in order for the language in it to be included in the ballot pamphlet for the November 4 election.
As it is currently written, Prop 1 gives top funding priority to a route between Los Angeles and San Francisco. If AB 3034 becomes law, Prop 1 would be:
* Amended to give all high-speed rail corridors, including the route through Altamont Pass, an equal opportunity to compete for a share of the $9 billion.

Bond Act

Authorizes $980,000,000 in bonds, to be repaid from state’s General Fund, to fund the construction, expansion, remodeling, renovation, furnishing and equipping of children’s hospitals.
Designates that 80 percent of bond proceeds go to hospitals that focus on children with illnesses such as leukemia, cancer, heart defects, diabetes, sickle cell anemia and cystic fibrosis.
Requires that qualifying children’s hospitals provide comprehensive services to a high volume of children eligible for governmental programs and meet other requirements.
Designates that 20 percent of bond proceeds go to University of California general acute care hospitals.

Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government:

State costs of about $2 billion over 30 years to pay off both the principal ($980 million) and the interest ($1 billion) costs of the bond.
Payments of about $67 million per year.

Bond. Statute.
Authorizes $5 billion in bonds paid from state’s General Fund, allocated approximately as follows:

58% in cash payments of between $2,000 and $50,000 to purchasers of certain high fuel economy and alternative fuel vehicles;
20% in incentives for research, development and production of renewable energy technology;
11% in incentives for research and development of alternative fuel vehicle technology;
5% in incentives for purchase of renewable energy technology; 4% in grants to eight cities for education about these technologies;
and 3% in grants to colleges to train students in these technologies.

Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government:

State costs of about $9.8 billion over 30 years to pay both the principal ($5 billion) and interest ($4.8 billion) costs on the bond.
Payments of about $325 million per year.
Increase in state sales tax revenues of an unknown amount, potentially totaling in the tens of millions of dollars, over the period from 2009 to beyond 2018.
Increase in local sales tax and VLF revenues of an unknown amount, potentially totaling in the tens of millions of dollars, over the period from 2009 to about 2018-19.
Potential state costs of up to about $10 million annually, through about 2018 -19, for state agency administrative costs not funded by the measure.

Bond Measure

Authorizes issuance of $900 million in bonds to create a fund that assist veterans who are purchasing farms, homes and mobile home properties.

California Proposition Watcher