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California Proposition 206, Bonds for Veterans (1996)

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California Proposition 206, also known as the Veterans' Bond Act of 1996, was on the November 5, 1996 general election ballot in California as a legislatively-referred bond act, where it was approved.

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.

Election results

Logo of the Cal Vet loans program
Proposition 206
ResultVotesPercentage
Approveda Yes 4,993,677 53.56%
No4,330,35446.44%

Text of measure

Summary

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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.

Fiscal impact

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
Chamber Ayes Noes
Assembly 74 0
Senate 29 0

See also

External links