California Proposition 123, Public School Construction Bonds (1990)
Proposition 123 provided for a bond issue of $800 million for public school construction and facilities improvements.
The fiscal estimate provided by the California Legislative Analyst's Office said:
- "Direct Costs 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 $1.4 billion to pay off both the principal ($800 million) and interest (about $630 million). The average payment for principal and interest would be about $70 million per year."
Path to the ballot
The California State Legislature voted to put Proposition 123 on the ballot via Senate Bill 173 (Statutes of 1990, Ch. 24).