California Proposition 120, Prison Construction Bonds (1990)
Proposition 120 provided for a bond issue of $450 million for prison construction and Youth Authority facility funds.
The fiscal estimate provided by the California Legislative Analyst's Office said:
- "Direct Cost of Paying Off the Bonds. For these types of bonds, the state typically would make principal and interest payments from the state's General Fund over a period of about 20 years. If all of the bonds authorized by this measure are sold at an interest rate of 7.5 percent, the cost would be about $805 million to pay off the principal ($450 million) and interest ($355 million). The average payment would be about $40 million per year."
Path to the ballot
The California State Legislature voted to put Proposition 120 on the ballot via Senate Bill 842 (Statutes of 1989, Ch. 5).