California Proposition 52, Bonds for County Jails (1986)
Proposition 52 provided $495 million for "the construction, reconstruction, remodeling, and replacement of county correctional facilities and the performance of deferred maintenance thereon."
The fiscal estimate provided by the California Legislative Analyst's Office said:
Paying Off the Bonds. The state would make principal and interest payments over a period of up to 20 years from the state's General Fund. The average payment would be about $44.2 million each year, if the bonds were sold at an interest rate of 7.5 percent.
Borrowing Costs for Other Bonds. By increasing the amount which the state borrows, this measure may cause the state and local governments to pay more under other bond programs. These costs cannot be estimated.
Lower State Revenues. The people who buy these bonds are not required to pay state income tax on the interest they earn. Therefore, if California taxpayers buy these bonds instead of making other taxable investments, the state would collect less taxes. This loss of revenue cannot be estimated.
Path to the ballot
The California State Legislature voted to put Proposition 52 on the ballot via Senate Bill 146 (Statutes of 1986, Ch. 12).