2004 California Proposition 57
Proposition 57 (officially, the Economic Recovery Bond Act) was a
Proposition 58
(the California Balanced Budget Act) also passed.
Propositions 57 and 58 were the centerpiece of
2003 gubernatorial recall, was one of the chief opponents of Proposition 57.[4]
The last payment of these deficit bonds was made Wednesday, August 5, 2015.[5] Included in the payments made over the life of the bonds were payments into a state escrow account, where interest payments totaling $4.1 billion were put aside to be paid out through July 1, 2019.[5] When the bonds were paid off, Schwarzenegger said, "I’m glad this chapter of California’s fiscal history is finally closed."[5]
Official summary
- A one time Economic Recovery Bond of up to fifteen billion dollars ($15,000,000,000) to pay off the state's accumulated General Fund deficit as of June 30, 2004.[1]
- The Economic Recovery Bond will be issued only if the California Balanced Budget Act is also approved by the voters.
- The bonds will be secured by existing tax revenues and by other revenues that can be deposited in a special fund.
Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact:[1]
- One-time increase, compared to a previously authorized bond, of up to $4 billion to reduce the state's budget shortfall.
- Annual debt-service savings over the next few years.
- Above effects offset in subsequent years by higher annual debt-service costs due to this bond's larger size and the longer time period for its repayment.
Notes
- ^ a b c "Supplemental Voter Information Guide" (PDF). California Secretary of State. March 2, 2004.
- ^ "Statement of the Vote" (PDF). California Secretary of State. April 30, 2004.
- ^ Mathews, Joe (February 28, 2004). "Props. 57, 58 in Final Drive". Los Angeles Times.
- ^ Finnegan, Michael (March 2, 2004). "Props. 57, 58 Big Items in Homestretch". Los Angeles Times.
- ^ a b c Myers, John (August 5, 2015). "A Money Milestone: The End of California's 2004 Deficit Debt". KQED News. Archived from the original on 21 August 2015. Retrieved 5 August 2015.
External links
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