California Proposition 206, Bonds for Veterans (1996)
Proposition 206 authorized the State of California to sell $400 million in general obligation bonds for the Cal-Vet program, which provides "farm and home aid" to California veterans. This amount was estimated, by the Department of Veterans Affairs, as adequate to enable an additional 2,000 veterans to receive home mortgage and farm loans.
The first such loan program for veterans was approved by California voters in 1921. By 1996, voters had approved a total of $7.5 billion for the Cal-Vet program. In July 1996, about $250 million of previously approved funds were in the program.
Under the terms of Proposition 206, the money from the bond sales could be used by the Department of Veterans Affairs to purchase farms, homes, and mobile homes which are then resold to California veterans.
Text of measure
The official ballot summary that appeared on the ballot said:
- This act provides for a bond issue of four hundred million dollars ($400,000,000) to provide farm and home aid for California veterans. Costs offset by payments from participating veterans.
The California Legislative Analyst's Office provided an estimate of net state and local government fiscal impact for Proposition 206. That estimate was:
- General Fund costs of about $700 million to pay off both the principal ($400 million) and interest (about $300 million) on the bonds; costs offset by payments from participating veterans.
- Average payment for principal and interest of about $28 million per year for 25 years.
Path to the ballot
The California State Legislature voted to put Proposition 206 on the ballot via SB 852.
|Votes in legislature to refer to ballot|
- Official Voter Guide to Proposition 206
- Full text of Proposition 206
- November 5, 1996 California election results (dead link) (PDF)
- PDF of the paper version of the November 5, 1996 Ballot Propositions Voter Guide
- League of Women Voters analysis