Money, money, money Money, money, money (February 25, 2004)

Voters guide to the state propositions on the March 2 ballot

by Bill D'Agostino

Indiciative of California's fiscal worries, all four propositions on the Tuesday, March 2 ballot impact the state's budget in some manner.

On Thursday evening, Feb. 26, the League of Women Voters will be hosting a forum on the ballot measures from 7 p.m. to 8:30 p.m. at the Palo Alto school district's board room at 25 Churchill.

Here's a voters guide to the four state ballot measures:
Proposition 55 What is it?

Proposition 55 would let the state sell $12.3 billion in bonds that can only be used to construct and repair public education facilities. Repaid over 30 years, it would cost the state $823 million a year.
What supporters say

This is a good time to repair schools since interest rates are low. All of the money goes to new classrooms or school repairs. The new classrooms are needed to deal with increased enrollments. The repairs are needed to fix ailing schools.
What opponents say

With the state mired in economic chaos, this is not the time to go into more debt. The proposal unfairly favors schools in Los Angeles. More schools could be built if the Legislature would make education a higher priority.
Proposition 56 What is it?

Proposition 56 would make it easier to pass a state budget through the following changes: It would lower the percentage of votes needed to pass budget-related bills from 66 percent to 55 percent; it would reduce the salary for the Legislature and governor for each day the budget is late in being approved; and it would require that the Legislature stay in session until the budget is passed. The proposition will also require the creation of an official guide showing each elected officials' budget-related and tax-related vote.
s What supporters say

The bar for passing the state's budget is currently too high -- leading to gridlock among state lawmakers. Only two other states have as high a bar for passing a budget. The California Legislature has missed the deadline to pass a budget every year since 1986.
What opponents say

Lowering the threshold for spending will make it way too easy to raise taxes. Businesses will be hurt, and the state's economy will suffer.
Proposition 57 What is it?

Proposition 57 would allow the state to borrow $15 billion through the sale of bonds to pay California's budget deficit. It would replace $10.7 billion in bonds approved last year. Interest would cost $4 billion, approximately $2,000 for each household. Propositions 57 and 58 are tied together: For either to pass, both need a majority of voters to approve them.
What supporters say

Borrowing is necessary for the state to balance its budget without massive cuts. The state -- as well as local governments and school districts -- will face larger cuts without time for the state to get out of its budget hole, which borrowing allows.
What opponents say

Borrowing just puts off decisions, and forces future Californians to repay today's deficits. Plus, general obligation bonds are supposed to be used for capital investments, like rebuilding schools or streets, not repaying debt.
Proposition 58 What is it?

Proposition 58 forces the state to enact a balanced budget. It also forces the state to create a reserve fund to carry the state through difficult years, and obliges the state to never again borrow to pay off debts. Propositions 57 and 58 are tied together: for either to pass, both need a majority of voters to approve them. What supporters say

Not requiring a balanced budget, or having adequate reserves, has led to huge deficits and a budget crises.
What opponents say

The proposition is full of loopholes that would allow the Legislature to get around passing a balanced budget. Other currently-existing loopholes are also not closed.

E-mail Bill D'Agostino at bdagostino@paweekly.com

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