Gov. Gavin Newsom and the Legislature in California have placed two new bonds, totaling $20 billion, on the Nov. 5 ballot. Proposition 2 is for $10 billion to upgrade K-12 and community college facilities, while Proposition 4 is for another $10 billion to address climate change-related events. The state’s finances are already struggling, with a recent deficit of $73 billion for fiscal year 2024-25 and a declared fiscal emergency. The cost to pay off the $20 billion in bonds would be $937.5 million annually from the general fund, exacerbating the current fiscal crisis.
The Legislative Analyst’s Office will provide a financial analysis, but previous assessments of Proposition 1 found that the $6.4 billion bond would cost $310 million annually to pay off over 30 years. The education system in California already has high per pupil spending, but test scores remain low. Voters rejected a similar school bond in 2020, highlighting skepticism towards allocating more funds to a failing system.
Similarly, the climate bond is facing public skepticism, with 64% believing it is a bad time for new bonds. With inflation rising, convincing voters to approve these bonds may be challenging. Critics argue that the governor and Legislature are displaying fiscal irresponsibility by putting these bonds on the ballot, and Californians are urged to vote no on both Proposition 2 and 4 to avoid further financial strain on the state and its residents.
Source
Photo credit www.dailynews.com