Results tagged “bonds”

Every time we have a statewide election, there tend to be a few bond measures in there. Last November, one was the popular high speed rail bond that raised nearly $10 billion to whisk people from Los Angeles and San Fransisco in two hours, thirty-eight minutes. Most all agree, it's a good thing, but when it comes down to paying bonds back, it can run the state into fiscal problems such as we're facing today.

The credit crunch is hitting the state, the LA Times via a letter they obtained addressed to Treasury Secretary Henry M. Paulson from Gov. Arnold Schwarzenegger. "The state of California is the biggest of several governments nationwide that are being locked out of the bond market by the global credit crunch. If the state is unable to access the cash, administration officials say, payments to schools and other government entities could quickly be suspended and state employees could be laid off," the Times Reported.

Mark Paul, former deputy treasurer of California, among other things, has a good point about all the money-spending initiatives on this November's ballot. "In a little-noticed report, Treasurer Bill Lockyer projected last year that, at current tax levels, California will not be able to pay for its existing programs and its debt service at any time in the next two decades if voters keep approving bonds at the same rate as they have over the last 20 years." There are six props (1, 3, 5, 6, 9, 10) that would effect the budget at the tune of "$2.7 billion a year in bond debt service and direct state spending," all without any way to pay for them. If a 13th one is added, which would be a water bond, that number jumps to beyond $3 billion.

They keep piling on. Today, "the governor placed a $900 million bond measure on the ballot to provide low-interest home loans to returning veterans of current and recent wars," reports John Myers at KQED's Capitol Notes. And there could be more to come, he says. Three of them could be a water bond, a budget reform proposal and a reform of the lottery initiative to raise money for the state budget. Now that's fifteen props and there's still talk a possibility of more, up to eighteen. Eeek! Talk about a few months with lots of commercials, flyers and debate.

Back in November we approved Propositions 1A and 1B, bonds that gave $19.9 billion in transportation funding throughout the state. On Friday, California transportation officials recommended cutting more than $1 billion worth of freeway projects sought for Los Angeles County - including funding for a northbound car-pool lane on the San Diego (405) freeway. Los Angeles Mayor Antonio Villaraigosa and other officials are obviously not pleased and will be asking residents to step it...