California Proposition 12, Cal-Vet Veteran Home Loan Program Bond Measure (2008)

California Proposition 12
Election date November 4, 2008
Topic Bond issues
Status a Approved
Type Bond issue	Origin State Legislature

California Proposition 12 was on the ballot as a bond issue in California on November 4, 2008. It was approved.

A "yes" vote supported this measure to issue $900 million in bonds to provide loans to veterans to purchase homes or farms.

A "no" vote opposed this measure to issue $900 million in bonds to provide loans to veterans to purchase homes or farms.

Election results

California Proposition 12
Result		Votes	Percentage
Yes		7,807,630	63.53%
No		4,481,196	36.47%

Results are officially certified.

Source

Text of measure

Ballot title

The ballot title for Proposition 12 was as follows:

“

Veterans' Bond Act of 2008.

”

Ballot summary

The ballot summary for this measure was:

“

• This act provides for a bond issue of nine hundred million dollars ($900,000,000) to provide loans to California veterans to purchase farms and homes. • Appropriates money from the state General Fund to pay off the bonds, if loan payments from participating veterans are insufficient for that purpose.

”

Full Text

The full text of this measure is available here.

Fiscal impact statement

The fiscal impact statement was as follows:

“

Costs of about $1.8 billion to pay off both the principal ($900 million) and interest ($856 million) on the bonds; costs paid by participating veterans. Average payment for principal and interest of about $59 million per year for 30 years.

”

Support

Supporters

• State Sen. Mark Wyland (R)
• State Sen. Tony Strickland (R)
• Asm. Greg Aghazarian (R)

Arguments

The following supporting arguments were presented in the official voter guide:

“ On November 7, 1922, the people of California authorized the very first Veterans’ Bond Act for the Cal-Vet Home Loan Program. Over the past 85 years there have been 26 Veterans’ Bond Acts and Californians have consistently recognized the special debt we owe to those who have served our country in the armed forces by approving all of these bonds. The Cal-Vet Home Loan Program enables veterans to obtain low-interest rate loans for the purchase of conventional homes, manufactured homes, and mobile homes without costing the taxpayers one cent. More than 420,000 California veterans, including those who served during World War I, World War II, Korea, Vietnam, and more recently, in Iraq and Afghanistan, have become homeowners under the Cal-Vet Home Loan Program. All costs of the program, including all administration costs, are paid for by veterans holding loans. There have never been any costs to the taxpayers of California, so this is a fiscally sound way to assist veteran men and women as they return to civilian life. The program is also good for the California economy because, in addition to helping veterans, Cal-Vet home loans generate thousands of housing industry-related jobs with millions of dollars in annual payrolls. As these bonds are repaid by the veterans, new bonds must be authorized to continue this self-supporting program serving our veterans. That is the purpose of Proposition 12. This measure was placed on the ballot by a unanimous vote of 75–0 in the State Assembly and 39–0 in the State Senate. Approval of Proposition 12 will prove once again that Californians keep their promises to the men and women who perform the duty of defending our state and country. It is an appropriate expression of our appreciation for their service and sacrifice. Your “Yes” Vote on Proposition 12 will enable more veterans to buy homes in California and help the economy at the same time, all with no direct cost to the state’s taxpayers. State Sen. Mark Wyland (R) State Sen. Tony Strickland (R) Asm. Greg Aghazarian (R) ”

Opposition

Arguments

The following opposing arguments were presented in the official voter guide:

“ While our national political leaders may not always be wise in directing the use of American military force around the world, we rightly honor military service— especially the service of enlistees who actually put their lives at risk in combat. Enlistees should receive higher pay and benefits from the federal government. In the context of low pay and inadequate benefits from the federal government, state governments certainly are justified in stepping in and providing additional assistance. The Cal-Vet Loan Program has provided low-interest farm and housing loans to veterans for many years. This measure would authorize the State to borrow more money (by selling bonds) to provide additional funds for the Program. The amount to be borrowed is $900 million. Since funds are limited, the question is: WHICH VETERANS ARE THE MOST DESERVING OF ASSISTANCE? Cal-Vet loans are limited to veterans who served in the time of a war—including the Korean and Vietnam confl icts and the current campaigns in Afghanistan and Iraq. There is no requirement for the veteran to have served in combat or even in a combat zone. A veteran who served in Germany or never even left the United States can apply for a loan. The veterans who actually served in harm’s way are most deserving of the limited assistance available under the Cal-Vet Loan Program. California voters could reasonably insist that the CalVet Loan Program be limited to veterans who served in combat or a combat zone before they approve more borrowing to fund the Program. Gary Wesley ”

Media editorials

Support

• The Bay Area Reporter
• Contra Costa Times
• Los Angeles Times
• The Oakland Tribune
• Riverside Press-Enterprise
• San Francisco Bay Guardian
• San Francisco Chronicle
• San Jose Mercury News
• Santa Rosa Press Democrat

Opposition

• Orange County Register
• The Sacramento Bee
• San Diego Union-Tribune

Background

California began the veterans' home loan program in 1922. Prior to 2008, California voters had considered and approved 26 bond issues to fund the program for a total of $8.4 billion.

Path to the ballot

The California State Legislature voted to put Proposition 12 on the ballot via Senate Bill 1572 of the 2007–2008 Regular Session (Chapter 122, Statutes of 2008).

Votes in legislature to refer to ballot
Chamber	Ayes	Noes
Assembly	75	0
Senate	39	0

See also

2008 Measures

• 2008 Measures
• Housing on the ballot
• Veterans policy on the ballot
• Bond issues on the ballot
• 2008 legislative sessions

California

• California ballot measures
• California ballot measure laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls

External links

• November 4, 2008, General Election Voter Guide