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California Proposition 204, Bonds for Water Projects (1996)
Proposition 204 authorized the State of California to sell $995 million of general obligation bonds in order to:
- Restore and improve the Bay-Delta.
- For wastewater treatment and water supply and conservation.
- For local flood control and prevention.
Proposition 204 also required that the repayment of loans funded under Proposition 83 (1988), the Clean Water and Water Reclamation Bond be used to provide additional loans and grants for local water recycling projects.
Text of measure
The official ballot summary that appeared on the ballot said:
- This act provides for a bond issue of nine hundred ninety-five million dollars ($995,000,000) to provide funds to ensure safe drinking water, increase water supplies, clean up pollution in rivers, streams, lakes, bays, and coastal areas, protect life and property from flooding, and protect fish and wildlife and makes changes in the Water Conservation and Water Quality Bond Law of 1986 and the Clean Water and Water Reclamation Bond Law of 1988 to further these goals.
- Appropriates money from state General Fund to pay off bonds.
The California Legislative Analyst's Office provided an estimate of net state and local government fiscal impact for Proposition 204. That estimate was:
- General Fund cost of up to $1.8 billion to pay off both the principal ($995 million) and interest ($776 million).
- The average payment for principal and interest over 25 years would be up to $71 million per year.
Path to the ballot
The California State Legislature voted to put Proposition 204 on the ballot via SB 900.
|Votes in legislature to refer to ballot|
- Official Voter Guide to Proposition 204
- Full text of Proposition 204
- 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